Consider the Following Aggregate Expenditure Function: AE = $500 Billion

Multiple Choice

Consider the following aggregate expenditure function: AE = $500 billion + (0.75) Y.Assuming no government,no international trade,and desired investment is autonomous and equal to $120 billion,then which of the following is the correct statement of the consumption function?

A) C = $620 billion + (0.75) Y
B) C = $620 billion + (0.25) Y
C) C = $500 billion + (0.75) Y
D) C = $500 billion + (0.25) Y
E) C = $380 billion + (0.75) Y