Question

When in an economy saving function is S= 100+0.5Y and investment expenditure is ` 650 Cr, calculate :-
i) Equilibrium level of income
ii) Consumption expenditure
iii) Saving

Answer 1

Answer:

Saving function or the propensity to save expresses the relationship between saving and the level of income. It is simply the desire of the households to hoard a part of their total disposable income.

Explanation:

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