1.

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.

Answer»

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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