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C = 40 + 0

Question 71

Multiple Choice

C = 40 + 0.8Y Ig = 60 − 2i
I = 10
(Advanced analysis) The equations are for a private closed economy, where C is consumption, Y is the
Gross domestic product, Ig is gross investment, and i is the interest rate. The equilibrium level of GDP
In this economy is


A) $240.
B) $300.
C) $360.
D) $400.

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