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| 1. |
The saving curve makes an intercept of ₹ 40 crores on the negative Y-axis. If consumers spend 60% of additional income, then determine: (i) Saving Function, (ii) Consumption Function, (iii) Break-even level of income. |
| Answer» (i) S = -40+0.40Y, (ii) C= 40+0.60Y, (iii) ₹ 100 crores | |