Economics · Keynesian Economics
In a Keynesian macroeconomic framework, if the initial GDP is Rs. 100, autonomous aggregate investment is Rs. 30, and ex-post aggregate saving is Rs. 30 in equilibrium, what would be the aggregate saving in the new equilibrium if the aggregate investment remains fixed at Rs. 30 but the marginal/average propensity to save increases from 30% to 40%?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1More than Rs. 40
- 2Rs. 30✓
- 3More than Rs. 30
- 4Rs. 40
Correct answer
Rs. 30
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