wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The consumption function of an economy is given as: C = 40 + 0.7 Y. Calculate the saving at the income level of Rs. 2,200 crores (Saving - 7620 acres)

Open in App
Solution

The consumption at income level of Rs. 2,200 crores ,
C = 40+ 0.7 * 2,200
= 40+ 1640= Rs. 1680 crores.
Savings= Income- consumption= 2,200- 1680= Rs. 520 crores.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Items Excluded in GDP
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon