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.