1.

If consumption is 115 + 0,6y and investment is 550 what is equilibrium level of income

Answer»

0.6Y
I = 550

EQUILIBRIUM LEVEL Of INCOME:
C=115+0.6Y
S=I
S= -115 + 0.4Y
550= -115+0.4Y
550+115= 0.4Y
665= 0.4Y
Y = 1662.5



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