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Aggregate Demand, Consumption & Saving · Question 49 of 60

Question 49

MediumOriginal question

The saving function is S = −50 + 0.4Y. At an income of ₹100 crore, saving is

Options for question 49

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. S = −50 + 0.4 × 100 = −50 + 40 = ₹−10 crore: households dissave.

Concept
Dissaving
Typical time
70 s
Your time
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The rule this testsThe saving function and break-even
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