Question

A. In an economy, S = -100 + 0.4y is the saving function (where S= saving and Y = national income) and investment expenditure is ₹ 4,000. Calculate.
I.Equilibrium level of national income, and
ii Consumption expenditure at equilibrium level of national income.
iii .MPC
​

Answer 1

Answer:

A. In an economy, S = -100 + 0.4y is the saving function (where S= saving and Y = national income) and investment expenditure is ₹ 4,000. Calculate.

I.Equilibrium level of national income, and

ii Consumption expenditure at equilibrium level of national income.

iii .MPC