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Suppose the consumption equation is represented by the following: C = 250 + .75YD. Now assume government spending increases by 100 for the above economy.
Suppose the consumption equation is represented by the following: C = 250 + .75YD. Now assume government spending increases by 100 for the above economy. Given the above information, we know that equilibrium output will increase by
a. 200. | ||
b. 400. | ||
c. 800. | ||
d. 1000. | ||
e. none of these. |
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