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Question 1 of 13 Given the following information regarding the goods market, answer the question that follows. Autonomous consumption = R200 million Investment spending =
Question 1 of 13
Given the following information regarding the goods market, answer the question that follows. Autonomous consumption = R200 million Investment spending = R100 million Government spending = R300 million Taxes = R60 million Marginal propensity to consume = 0.75 Full-employment level of income = R2 460 million The equilibrium level of income and output is ____ and to reach the full-employment level of income, and taxes must decrease by ____.
- A. R2 220 million; R80 million
- B. R2 220 million; R60 million
- C. R2 580 million; R40 million
- D. R2 160 million; R100 million
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