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Consider the Following Information Describing an Economy with Demand-Determined Output

Question 99

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Consider the following information describing an economy with demand-determined output.There is no government or foreign trade.All dollar figures are in billions.
1.equilibrium condition is Y = C + I
2.marginal propensity to save = 0.20
3.the autonomous part of C is $50
4.investment is autonomous and equals $25
TABLE 21-5
-Refer to Table 21-5.The equilibrium level of national income is


A) $375.
B) $249.
C) $155.
D) $75.
E) $93.75.

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