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The consumption function in an economy is C = 80 + 0.6Y and investment level in an economy is 800 crores. State whether the following are true or false: (a) Equilibrium level of income is 2100 crores. (b) 275 crores is the total change in income if investment rises by 150 crores. (c) Value of multiplier is 2.5. |
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Answer» The consumption function in an economy is C = 80 + 0.6Y and investment level in an economy is 800 crores. State whether the following are true or false: |
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