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Using the Keynesian-Cross Analysis, Assume That the Consumption Function Is

Question 11

Multiple Choice

Using the Keynesian-cross analysis, assume that the consumption function is given by C = 200 + 0.7 (Y - T) . If planned investment is 100 and T is 100, then the level of G needed to make equilibrium Y equal 1,000 is:


A) 170.
B) 200.
C) 250.
D) 350.

Correct Answer:

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