1.

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.

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:
(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.



Discussion

No Comment Found