ISI 2011 question 9 me2

[RichaS]

[Abhitesh]

(i)
Rm+W+Rg = C + (1-alpha)W + I + alpha.W
=> R = C+I
=> R = I/(1-c) { Since, C = cR}

(ii)
R=I/(1-c)
=>Rm + Rg = I/(1-c)
=>theta.W + alpha.W = I/(1-c)
=> W = I/(1-c)(theta+alpha).