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Question : The equilibrium level of income in an economy is Rs. 3000 crore. The autonomous consumption expenditure is equal to Rs.250 crore and investment expenditure is Rs. 1000 crore. Calculate saving function.

Option 1: S=250+(1+b)3000

Option 2: S=250-(1-b)3000

Option 3: S=250+(-b)3000

Option 4: S=250+(1-b)3000


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: S=250+(1-b)3000


Solution : S=250+(1-b)3000

Hence, Option D is correct.

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