Multiple Choice
In a closed economy without government, the marginal propensity to consume is 0.75, consumption equals income at $120 billion and the level of investment is $40 billion. What is the equilibrium level of income?
A) $280 billion.
B) $320 billion.
C) $262 billion.
D) $198 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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