Assume That the Consumption Function Is Given by C =

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 = 50K^0.5L^0.5, where K = 100. If L increases from 100 to 144, then consumption increases by:

A) 560.
B) 840.
C) 1,120.
D) 2,120.