In an Economy, AD = ₹250cr + 0.6Y and at zero level of income consumption is ₹150 crores. The autonomous investment will be: |
₹100 cr. ₹150 cr. ₹50cr. ₹200 cr. |
₹100 cr. |
AD = C + I or AD = c̅ + bY + I According to the question, autonomous consumption (c̅) i.e. consumption at zero level of income - ₹150 crores AD = ₹250 cr + 0.6Y or AD = c̅ + bY + I so, by comparing both equations c̅ + I = ₹250 cr ₹150 crores + I = ₹250 cr I = ₹250 cr - ₹150 crores I = ₹100 crores Thus, we can say that the autonomous investment is ₹100 crores
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