If APC of an economy is 0.6, what should be the savings when an income level is Rs 2000 crore?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: 800
If APC = 0.6,
then APS = 0.4,
as APS + APC = 1
APS = \(\frac{Savings}{Income}\)
0.4 = \(\frac{Savings}{2000}\)
Savings = 800