Multiple Choice
In a private closed economy (a) the marginal propensity to save is 0.25, (b) consumption equals income when consumption is $120 billion, and (c) the level of investment is $40 billion.What is the equilibrium level of income?
A) $280 billion
B) $320 billion
C) $262 billion
D) $198 billion
Correct Answer:
Verified
Correct Answer:
Verified
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