Suppose in an imaginary economy, autonomous consumption = Rs. 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be ________ . (Choose the correct alternative to fill in the blank):
Suppose in an imaginary economy, autonomous consumption = Rs. 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be ________ . (Choose the correct alternative to fill in the blank):
Show Hint
- -500 + 0.8Y
- -500 + 0.8Y
- -500 + 0.2Y
- -500 + 0.2Y
The Correct Option is D
Solution and Explanation
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