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CBSE 2016 Class 12 Economics Outside Delhi Set-3

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Question : 2 of 4
Marks: +1, -0
An economy is in equilibrium. Find investment expenditure:
National Income =1000=1000
Autonomous Consumption =100=100
Marginal Propensity to consume (c)=0.8(c)=0.8
Solution:  
National Income (Y)=1000(Y)=1000
Autonomous Consumption (C)=100(C)=100
Marginal propensity to consume (c)=0.8(c)=0.8
At Equilibrium, Y=C+IY = C + I
Y=C+cY+IY = C + cY + I
1000=100+(0.8×1000)+I1000 = 100 + (0.8 \times 1000) + I
1000=100+(800)+I1000 = 100 + (800) + I
1000=900+I1000 = 900 + I
1000−900=I1000 - 900 = I
I=₹ 100.I = \text{₹ }100.
Investment expenditure=₹ 100= \text{₹ }100
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