CUET Preparation Today
The saving function of a two sector economy is given as $S=(-)100+0.2Y$. The equilibrium level of income of this economy is 1000, then calculate the value of consumption at equilibrium? |
100 500 900 1000 |
900 |
The correct answer is Option (3) → 900 $S=(-)100+0.2Y$ Y=1000 S= −100+0.2 * (1000) = 100 Y = C + S 1000 = C + 100 C = 900
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