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Income Determination & the Multiplier · Question 24 of 58

Question 24

HardOriginal question

C = 40 + 0.75Y and planned investment is ₹60 crore. What is consumption at equilibrium?

₹60 croreCorrect answerYour answer₹300 croreCorrect answerYour answer₹340 croreCorrect answerYour answer₹400 croreCorrect answerYour answer

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CorrectNot quiteAnswer C

Correct answer: C

Equilibrium Y = (40 + 60) ÷ 0.25 = 400.
C = 40 + 0.75 × 400 = ₹340 crore; saving = 60 = investment.

Concept: Consumption at equilibrium
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsFinding equilibrium income

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