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Assume That Equilibrium GDP (Y) Is 5,000

Question 100

Multiple Choice

Assume that equilibrium GDP (Y) is 5,000. Consumption is given by the equation C = 500 + 0.6(Y - T) . Taxes (T) are equal to 1,000. Government spending is 600. In this case, equilibrium investment is:


A) 600.
B) 1,100.
C) 1,500.
D) 2,200.

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