An economy is in equilibrium. From the following data about an economy investment expenditure.
(i) Income=1000
(ii) Marginal propensity to consumption=0.9
(ii) Investment expenditure=100

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1 Answers

Y=C+I
`Y=bar(C)+bY+I`
`Y=bar(C)+bY+I`
`10000=100+9000+I`
I=10000-9100
I=900

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