1.

With the help of saving function: S = -20+ 0.3 (Y), calculate consumption expenditure at the income level of ₹1,000 crores.

Answer» Correct Answer - Consumption Expenditure ( C) = ₹ 720 crores
We know, Saving function is expressed as: S= - `barc` + (1-b)Y
It means: - 20 indicates that autonomous consumption (`barc`) = ₹ 20 crores
`" "`(Assuming value of `(barc)` in ₹ crores )


Discussion

No Comment Found