In a Certain Economy, the Components of Planned Spending Are

Multiple Choice

In a certain economy, the components of planned spending are given by:  
C = 500 + 0.8(Y - T ) - 300r
Iᴾ = 200 - 400r
G = 200
NX = 10
T = 150
 
Given the information about the economy above, what would be the impact on induced expenditures of a one-percentage-point increase in the real interest rate?

A) Induced expenditures would increase by 35 units.
B) Induced expenditures would not change.
C) Induced expenditures would decrease by 35 units.
D) Induced expenditures would decrease by 7 units.