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| 1. |
The break-even point for an economy occurs at the income level of ₹ 500 crores If marginal propensity to consume is 0.6, determine: (i) Autonomous consumption, (ii) Saving function, (iii) Level of income when saving is ₹ 600 crores. |
| Answer» (i) ₹ 200 crores, (ii) -200+0.4 (Y), (iii) ₹ 2,000 crores | |