Question
Consider the following information describing a closed economy with no government and where aggregate output is demand determined. All dollar figures are in billions. 1.
Consider the following information describing a closed economy with no government and where aggregate output is demand determined. All dollar figures are in billions.
1. the equilibrium condition is
Yequals=Cplus+I
2. the marginal propensity to consume is 0.90
3. the autonomous part of C is $300
4. investment is autonomous and is $100
TABLE
6minus3
Refer to Table
6minus3.
At the equilibrium level of national income, desired consumption expenditure ($billions) will be
Question content area bottom
Part 1
A.
$ 4 comma 000$4,000.
B.
$ 3 comma 900$3,900.
C.
$ 3 comma 600$3,600.
D.
$300.
E.
$400.
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