Multiple Choice
(Advanced analysis) In a private closed economy, (a) the marginal propensity to save is 0.25, (b) consumption equals income at $120 billion,and (c) the level of investment is $40 billion.What is the equilibrium level of income?
A) $280 billion.
B) $320 billion.
C) $262 billion.
D) $198 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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