Question

Given the saving functions is S=-50+0.8y and the investment is ₹110 crore.Calculate Equilibrium level of investment​

Answer 1

Answer:

equilibrium level of income (y)=₹200

Explanation:

From the Keynesian point , planed investment=planed saving in equilibrium position.

settings

-50+.8y=110

or.8y=160

or y= 160/.8

or y=200.