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Suppose the Consumption Equation Is Represented by the Following: C

Question 45

Multiple Choice

Suppose the consumption equation is represented by the following: C = 250 + .75YD.Now assumm government spending increases by 100 for the above economy.Given the above information,we know that equilibrium output will increase by


A) 200.
B) 400.
C) 800.
D) 1000.
E) none of the above

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