12. *An economy shows the following features:

Consumption C = 80 + 0.8Y d

(where, Y d = Disposable income)

Tax T = 60 + 0.2Y

(where, Y = National income)

Investment I = 200 – 10r

(where, r = Rate of interest, percentage)

Transfers T R = – 40 Government Expenditure G = 160 Transaction and precautionary demand for money, M 1 = 0.4Y Speculative demand for money M

2 = 300 – 20R Supply of money (Amounts in Rs) M s = 476