26. (2 points) In a certain economy, when income is $1000, consumer spending is $800. The value of the spending multiplier for this economy is 2.5. It follows that, when income is $1020, consumer spending is A. $816. For this economy, an initial increase of $100 in consumer spending translates into a $250 increase in aggregate demand. B. $816. For this economy, an initial increase of $100 in consumer spending translates into a $400 increase in aggregate demand. C. $812. For this economy, an initial increase of $100 in consumer spending translates into a $250 increase in aggregate demand. D. $812. For this economy, an initial increase of $100 in consumer spending translates into an $800 increase in aggregate demand