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The consumption function is expressed as: …

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The consumption function is expressed as: C=100+0.25Y. Calculate saving if consumption expenditure at equilibrium level of national income is Rs.500 crore.
  • 2 answers

Vaidehi Saraf 7 years, 10 months ago

275 as at equ saving is 0. So S = -100+0.75×500 = 275

Nayra Gupta 7 years, 10 months ago

500= 100+0.25Y Y=1600, C+S =Y S= 1600-500= 1100
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