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In a Certain Economy, the Components of Planned Spending Are

Question 110

Multiple Choice

In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T) - 300r
I ᴾ = 200 - 400r
G = 200
NX = 10
T = 150
 
Given the information about the economy above, which expression gives autonomous expenditures?


A) 0.8Y
B) [790 − 700r ]
C) [910 − 700r ]
D) [760 − 700r ]

Correct Answer:

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