1.

The saving function for an economy is given as: S = -120 + 0.4(Y). Determine: (i) Consumption function, (ii) Consumption at income level of ₹ 600 crores, (iii) Break-even level of income.

Answer» (i) C= 120+ 0.60(Y), (ii) ₹ 480 crores, (iii) ₹ 300 crores


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