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 induced expenditures?
A) [910 − 700r ]
B) [790 − 700r ]
C) 0.8Y
D) 0.2Y
Correct Answer:
Verified
Correct Answer:
Verified
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