Multiple Choice
Given the consumption function C = $500 billion + 0.80Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to increase by:
A) $800 billion.
B) $1,000 billion.
C) $1,300 billion.
D) $1,500 billion.
E) $1,800 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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