The Letters Y, C, S, and I Are Used to Represent

Multiple Choice

The letters Y, C, S, and I are used to represent GDP, consumption, saving, and investment

-In a closed economy with no government: (a) the marginal propensity to consume is 0.5, (b) autonomous consumption $60 billion and (c) the level of autonomous investment is $40 billion. What is the equilibrium level of income?

A) $250 billion.
B) $300 billion.
C) $200 billion.
D) $100 billion.