Calculate investment expenditure in the economy from the following dat – InterviewSolution

InterviewSolution

1.	Calculate investment expenditure in the economy from the following data :(i) Equilibrium level of income = 10,000(ii) Autonomous consumption = 500(iii) Marginal propensity to consume = 0.75
Answer» Y = C bar + MSP.Y + I 10,000 = 500 + 0.75(10,000) + I I = 10,000 - 500 - 7,500 I = 2,000

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