Multiple Choice
Assume that equilibrium GDP (Y) is 5,000. Consumption (C) 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.
Correct Answer:
Verified
Correct Answer:
Verified
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