Consider the Following Aggregate Expenditure Function: AE = $300 Billion

Multiple Choice

Consider the following aggregate expenditure function: AE = $300 billion + (0.87) Y.Assuming that we have no government,no international trade and desired investment is autonomous and is equal to $56 billion,then which of the following is the correct statement of the consumption function?

A) C = $356 billion + (0.87) Y
B) C = $356 billion + (0.13) Y
C) C = $244 billion + (0.87) Y
D) C = $244 billion + (0.13) Y
E) C = $300 billion + (0.13) Y