Question:
In an economy, the consumption function is C=500+0.75Y. Calculate equilibrium level of income, when investment expenditure is ₹ 5,000.
In an economy, the consumption function is C=500+0.75Y. Calculate equilibrium level of income, when investment expenditure is ₹ 5,000.
Updated On: May 18, 2024
- ₹ 21,000
- ₹ 22,000
- ₹ 20,000
- ₹ 2,250
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The Correct Option is B
Solution and Explanation
The correct option is (B): ₹ 22,000
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