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In the Model Developed in the Text, Consumption Spending (C)

Question 39

Multiple Choice

In the model developed in the text, consumption spending (C) is equal to

A) C₀ + C_y x Y^D.
B) C₀ + C_y x Y.
C) C₀ + C_y x (1-t) Y^D.
D) C_y x Y^D.

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