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CBSE 2017 Class 12 Economics Delhi Set-2

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Question : 2 of 4
Marks: +1, -0
An economy is in equilibrium. From the following data about an economy calculate investment expenditure :
(i) Income =10000=10000
(ii) Marginal propensity to consume =0.9=0.9
(iii) Autonomous consumption =100=100
Solution:  
C=c‾+byC = \overline{c} + by
=100+0.9×10000=100+0.9 \times 10000
⇒C=₹9,100\Rightarrow C = \text{₹} 9{,}100
Investment=Y−C\text{Investment} = Y - C
⇒=10,000−9,100\Rightarrow = 10{,}000 - 9{,}100
⇒=₹900\Rightarrow = \text{₹} 900
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