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In the Keynesian-Cross Analysis, If the Consumption Function Is Given

Question 65

Multiple Choice

In the Keynesian-cross analysis, if the consumption function is given by C = 20 + 0.7 (Y - T) , and planned investment is 100, G is 100, and T is 100, then equilibrium Y is:


A) 350.
B) 600.
C) 950.
D) 1,100.

Correct Answer:

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