Question
Economics Question on Income and Expenditure Account
In an economy, the consumption function is C=500+0.75Y. Calculate equilibrium level of income, when investment expenditure is ₹ 5,000.
A
₹ 21,000
B
₹ 22,000
C
₹ 20,000
D
₹ 2,250
Answer
₹ 22,000
Explanation
Solution
The correct option is (B): ₹ 22,000