• # question_answer An economy is in equilibrium. From the following data about an economy calculate investment expenditure: (i) Income = 10000 (ii) Marginal propensity to consume =0.9 (iii) Autonomous consumption =100

 $C\,\,=\,\,\,\,\overline{c\,}+bY$ $=\,\,100+\frac{0.9}{10}\times \,10000$ $C\Rightarrow \,\,\text{Rs}\text{.}\,\,9.100$ $\text{Investment}\,\,+\,\,=\,\,Y\,\,-\,\,C$ $\Rightarrow$$10,000\,\,-\,\,9,100$ $\Rightarrow$Rs. 900