Home
Class 12
ECONOMICS
The consumption function is give as C=75...

The consumption function is give as C=75+0.75Y and autonomous investment is 100 crore. Derive the saving function and calculate the level of income at which saving is equal to investment.

Text Solution

Verified by Experts

Saving function S=-75+0.25, Level of income=700crores
Promotional Banner

Topper's Solved these Questions

  • INCOME DETERMINATION AND MULTIPLIER

    SANDEEP GARG|Exercise NCERT QUEST.|1 Videos
  • INCOME DETERMINATION AND MULTIPLIER

    SANDEEP GARG|Exercise MCQ|20 Videos
  • INCOME DETERMINATION AND MULTIPLIER

    SANDEEP GARG|Exercise LONG|12 Videos
  • GOVERNMENT BUDGET AND THE ECONOMY

    SANDEEP GARG|Exercise Unsolved Practicals|8 Videos
  • MEASUREMENT OF NATIONAL INCOME

    SANDEEP GARG|Exercise Miscellaneous Practicals|16 Videos

Similar Questions

Explore conceptually related problems

The consuption function of an economy is given as, C=200+0.75, if planned investment are 500 crores, calculate equilibrium level of national income

If an economy (a) Consumption function is given by C=100+0.75Y. And (b)Autonomous Investment is 150 crore. Estimate (i) Equilibrium level of income and (ii) Consumption and Saving at the Equilibrium level of income.

Derive a straight line saving curve using the following consumption function : C= 20+0.6Y. Presuming the income levels to be ₹ 100, ₹ 200 and ₹ 300 crores. Also calculate that level of income where consumption is equal to income.

In a two- sector economy , the income function is: Y =C+l and consumption function is given as: C =40+0.75Y. If investments are Rs. 60 crores, calculate: (a) Equilibrium level of income , (b) Level of consumption at equilibrium, (c ) Saving at equilibrium.

In an economy, the consumption function is C =500 + 0.75Y , where C is consumption expenditure and Y is income. Calculate the equilibrium level of income and consumption expenditure, when investment expenditure is 5,000.

If saving function for an economy is given as : S = - 500 + 0.2Y and investment expenditure is Rs. 100 crores, then determine: ("i) Level of income when saving will become zero, (ii) Level of income when saving is equal to investment .

In an economy C=200+0.75Y is the consumption function where C is consumption expenditure and Y is national income. Investment expenditure is 4000. Calculate equilibrium level of income and consumption expenditure.

On the basis of consumption function: C = 120 + 0.40 Y, answer the following questions: (i) Derive the saving function. (ii) Determine the saving at the income level of ₹ 500 crores. (iii) At what level of income, saving becomes zero ?

SANDEEP GARG-INCOME DETERMINATION AND MULTIPLIER-Practicals
  1. In an economy S=-50+0.5Y is the saving function (where S= saving and ...

    Text Solution

    |

  2. In an economy C=300+0.8Y and I=500 (Where C=Consumption,Y=Income, I=in...

    Text Solution

    |

  3. The consumption function is give as C=75+0.75Y and autonomous investme...

    Text Solution

    |

  4. From the following information about an economy calculate (i) its equi...

    Text Solution

    |

  5. In an economy the marginal propensity to save 0.25. Investment is incr...

    Text Solution

    |

  6. By increase in investment of 100 crores national income of a country i...

    Text Solution

    |

  7. If increase in investment 125 crores and increase in national incomes ...

    Text Solution

    |

  8. In an economy marginal propensity to save is 0.10. How much increases ...

    Text Solution

    |

  9. In an economy investment incresaes by 600 crores. If marginal propenci...

    Text Solution

    |

  10. Give marginal propensity to save 0.25, what will be the incresae in na...

    Text Solution

    |

  11. As a result of increase in investment by 60 crore, national income ris...

    Text Solution

    |

  12. It is planned by a new investment of 1000 crores in the economy. How m...

    Text Solution

    |

  13. An increase in investment by 400 crores leads to increase in National ...

    Text Solution

    |

  14. In an economy the marginal propensity to consume is 0.75. Investment e...

    Text Solution

    |

  15. An economy is in equilibrium. Its consumption function C =300+0.8Y whe...

    Text Solution

    |

  16. An economy is in equilibrium. Its national is 5500 and autonomous cons...

    Text Solution

    |

  17. Find 'investment' from the following National income=500, Autonomous c...

    Text Solution

    |

  18. Find consumption expenditure from the following Autosome consumption=1...

    Text Solution

    |

  19. C=100+0.4Y is the consumption function of an economy where C is Consum...

    Text Solution

    |

  20. C=50+0.5Y is the consumption function where C is Consumption Expenditu...

    Text Solution

    |