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In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:
- a)Rs. 100 cr.
- b)Rs. 150 cr.
- c)Rs. 50 cr.
- d)Rs. 200 cr.
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income co...
Explanation:
The given equation for aggregate demand (AD) is AD = Rs. 250 cr + 0.6Y.
The equation represents the relationship between aggregate demand and income. Y represents the income level in the economy.
When the income level is zero (Y = 0), the consumption expenditure is given as Rs. 150 crores.
To find the value of autonomous investment, we need to determine the value of AD when the income level is zero.
Substituting Y = 0 into the AD equation:
AD = Rs. 250 cr + 0.6(0)
= Rs. 250 cr
Therefore, when the income level is zero, the aggregate demand is Rs. 250 crores.
To find the value of autonomous investment, we subtract the consumption expenditure (Rs. 150 crores) from the aggregate demand when the income level is zero.
Calculating Autonomous Investment:
Autonomous Investment = Aggregate Demand - Consumption Expenditure
= Rs. 250 cr - Rs. 150 cr
= Rs. 100 cr
Hence, the value of autonomous investment is Rs. 100 crores.
Therefore, the correct answer is option 'A' - Rs. 100 cr.
The given equation for aggregate demand (AD) is AD = Rs. 250 cr + 0.6Y.
The equation represents the relationship between aggregate demand and income. Y represents the income level in the economy.
When the income level is zero (Y = 0), the consumption expenditure is given as Rs. 150 crores.
To find the value of autonomous investment, we need to determine the value of AD when the income level is zero.
Substituting Y = 0 into the AD equation:
AD = Rs. 250 cr + 0.6(0)
= Rs. 250 cr
Therefore, when the income level is zero, the aggregate demand is Rs. 250 crores.
To find the value of autonomous investment, we subtract the consumption expenditure (Rs. 150 crores) from the aggregate demand when the income level is zero.
Calculating Autonomous Investment:
Autonomous Investment = Aggregate Demand - Consumption Expenditure
= Rs. 250 cr - Rs. 150 cr
= Rs. 100 cr
Hence, the value of autonomous investment is Rs. 100 crores.
Therefore, the correct answer is option 'A' - Rs. 100 cr.
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Community Answer
In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income co...
(AD = C + I), Let Y = 0
So, 250 = (150 + 0.6Y + I)
(250 = 150 + I)
(I = 250 – 150 = 100 Cr).
So, 250 = (150 + 0.6Y + I)
(250 = 150 + I)
(I = 250 – 150 = 100 Cr).
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In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer?
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In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer?.
In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer?.
Solutions for In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts.
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In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of In an Economy, AD = Rs. 250 + cr + 0.6Y and at zero level of income consumption is Rs.150 crores. The value of autonomous investment will be:a)Rs. 100 cr.b)Rs. 150 cr.c)Rs. 50 cr.d)Rs. 200 cr.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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