NextQ69

For a hypothetical economy, assume the government increased an infrastructural investment by Rs. 20,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.

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Question 68

Suppose in an imaginary economy, autonomous consumption = Rs. 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be __________. (Choose the correct alternative to fill in the blank)

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