Given: Investment = N100 million
Consumption = N200 m + 0.75Y
Y = C + I
where, Y =Income, C = Consumption and where
I = Investment
What is the income level to the nearest million?
Given:
Investment I = N100 million
Consumption C = N200 + 0.75Y
Income equation Y = C + Y
Substitute C into the income equation
We substitute the consumption equation into the income equation:
Y = (N200 + 0.75Y) + N100
Y = N300 + 0.75Y
Subtract 0.75Y from both sides:
Y − 0.75Y = N300
This simplifies to:
0.25Y = N3000.
Now, divide both sides by 0.25
Y = \(\frac{N300}{0.25}\) = N1,200 millions.
Contributions ({{ comment_count }})
Please wait...
Modal title
Report
Block User
{{ feedback_modal_data.title }}