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In a two sector economy the saving (s) a...

In a two sector economy the saving (s) and investment (I) functions are:
S = - 10 +0.2Y , I = -3+0.1Y
What will be the equilibrium level of income (Y)?

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Equilibrium level of income is attained when S= I
It means : - 10 + 0.2Y = -3 +0.1Y or 0.2Y - 0.1Y = - 3+10
Y = ₹ 70
Equilibrium level of income = ₹ 70.
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RADHA BHUGANA-INCOME DETERMINATION AND MULTIPLIER-Practical Application
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