Question 23
MediumOriginal questionC = 60 + 0.6Y and planned investment is ₹100 crore. Equilibrium income is
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Y = (60 + 100) ÷ (1 − 0.6) = 160 ÷ 0.4 = ₹400 crore.
Worth noting
₹266.7 crore divides by 0.6, the MPC, instead of by 0.4.
- Concept
- Equilibrium income
- Typical timeTypical
- 70 s
- Your timeYours
- —
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