Question : The consumption expenditure and investment demand are Rs. 500 crores and Rs. 300 crore respectively when the income level is Rs. 1000 crores Calculate AD.
Option 1: 500
Option 2: 400
Option 3: 900
Option 4: 100
Correct Answer: 900
Solution : AD= Consumption + Investment
AD= 500+400
AD= Rs. 900 crore
Hence, Option C is correct.
Question : The consumption expenditure and investment demand are Rs. 500 crores and Rs. 400 crore respectively when the income level is Rs. 1000 crores Calculate savings.
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