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.
Option 1: 100
Option 2: 400
Option 3: 500
Option 4: 1000
Correct Answer: 500
Solution : Savings= Income - Consumption
Savings= 1000-500
Savings= Rs. 500 crore
Hence, Option C is correct.
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