Multiple Choice
Assume that the consumption function is given by C = 200 + 0.7(Y - T) , the tax function is given by T = 100 + 0.2Y, and Y = 50K0.5L0.5, where K = 100. If L increases from 100 to 144, then consumption increases by:
A) 560.
B) 840.
C) 1,120.
D) 2,120.
Correct Answer:
Verified
Correct Answer:
Verified
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