What will be the saving and consumption expenditure at equilibrium level of national income when planned investment = Rs 200 crore and C = 100 + 0.6Y?

savings = 200, consumption = 550

The equilibrium level of income can be determined with the help of:

Y = C + I ( at equilibrium level)

Y =  (c̅ + bY) + I

Y = 100 + 0.6Y + 200

Y - 0.6Y = 300

0.4Y = 300

Y = 750

C = c̅ + bY 

C = 100 + 0.6 (750)

C = 550

As, the income is consumer or saved we can say that, Y = C + S 

750 = 550 + S

S = 200

Hence, consumption is 550 and savings is equal to 200