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Where I Is Planned Investment, S Is Saving, and Y

Question 25

Multiple Choice

Where I is planned investment, S is saving, and Y is gross domestic product (GDP) .
I = I0 = 80 (6.3)
S = -80 + .4Y (6.4)
-Refer to equations (6.3) and (6.4) . The equilibrium consumption in a private sector closed economy will be:


A) $400.
B) $280.
C) $320.
D) $360.

Correct Answer:

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