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C = 500 0.75 YD I = 310 G = 140 = 500 0.75 (Y - T) T = 200, where C is the consumption
C = 500 0.75 YD I = 310 G = 140 = 500 0.75 (Y - T) T = 200, where C is the consumption function, (Y - T) is disposable income, I is investment, G is government spending, and T is taxes. 1. What can you say about the government's budget situation? (Hint: Think about what "G" and "T" stand for.)
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