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