Plz solve this question.
Dear Student
Investment = Rs.200 crore
C= 50+0.8Y
As we know, Y = C+I
So, Y= 50+0.8Y+200
Y-0.8Y= 250
0.2Y= 250
Y (Equilibrium Level of Income) = Rs.1250 Crore
Consumption at equilibrium level = 50+ (0.8 x 1250)
Consumption at equilibrium level = Rs. 1050 crore
Since, Y=C+S
So, S= 1250-1050
Savings at equilibrium level = Rs.200 crore
Regards
Investment = Rs.200 crore
C= 50+0.8Y
As we know, Y = C+I
So, Y= 50+0.8Y+200
Y-0.8Y= 250
0.2Y= 250
Y (Equilibrium Level of Income) = Rs.1250 Crore
Consumption at equilibrium level = 50+ (0.8 x 1250)
Consumption at equilibrium level = Rs. 1050 crore
Since, Y=C+S
So, S= 1250-1050
Savings at equilibrium level = Rs.200 crore
Regards