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      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

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