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Following is the consumption function in an economy: C = 75 + 0.6Y If the investment level in an economy is Rs. 400 crores, what will be: (a) Equilibrium level of income (b) APC at equilibrium level (c) Value of multiplier OR (a) What is fiscal policy? (b) Explain various fiscal policy measures to reduce deficient demand. |
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Answer» Following is the consumption function in an economy: If the investment level in an economy is Rs. 400 crores, what will be: (a) Equilibrium level of income (b) APC at equilibrium level (c) Value of multiplier OR (a) What is fiscal policy? (b) Explain various fiscal policy measures to reduce deficient demand. |
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