Question:
The consumption function in an imaginary economy is known to be C = 100 + 0.75Y. The level of equilibrium income in this economy is 800 crores. What will be the value of investment in this economy?
The consumption function in an imaginary economy is known to be C = 100 + 0.75Y. The level of equilibrium income in this economy is 800 crores. What will be the value of investment in this economy?
Updated On: Nov 4, 2024
- 200 crores
- 100 crores
- 400 crores
- 300 crores
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The Correct Option is B
Solution and Explanation
Using the equilibrium condition, the investment is calculated as 100 crores.
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