Question

    C = 40+0.75Y

    I = 140 – 10i , G=100, T=80, Money demand = 0.2Y – 5i , Money Supply = 85

    Suppose the government increases the expenditure by Rs.100 , what is the change in equilibrium income level?

    A 100 Correct Answer Incorrect Answer
    B 120 Correct Answer Incorrect Answer
    C 154 Correct Answer Incorrect Answer
    D 250 Correct Answer Incorrect Answer

    Solution

    Practice Next