Question : On the basis of consumption function: C=20+0.6Y. Determine consumption at the income level of Rs.600.
Option 1: 280
Option 2: 300
Option 3: 380
Option 4: 400
Correct Answer: 380
Solution :
Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.
Question : On the basis of consumption function: C=120+0.6Y. Determine saving at the income level of Rs.800.
Question : On the basis of consumption function: C=100+0.8Y. Determine saving at the income level of Rs.800.
Question : The consumption function is given by C = 800 + 0.6Y. If disposable income is INR 5,000, what is the level of consumption?
Question : Using the consumption function, Calculate saving at income level of 2500 crore, if autonomous consumption is 200 crore and 60% of additional income is consumed.
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