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The consumption function of an economy …

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The consumption function of an economy is :C=40+0.8y determine that level of income where average propensity to consume will be one
  • 1 answers

Sia ? 6 years, 5 months ago

C = 300 + 0.8Y
Y = C + I
Y = 300 + 0.8Y + 700
Y - 0.8Y = 1000
0.2Y = 1000
Y = 5000
National Income = Rs.5000

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