Multiple Choice
Using the Keynesian cross, if autonomous consumption is $200 and investment is $400, and the marginal propensity to consume is 0.75, while government spending, net exports and taxes are zero, then equilibrium output is
A) $450.
B) $600.
C) $1,050.
D) none of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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