Multiple Choice
Suppose C = 100 + 0.6(Y - T) and T = 200,I = 150,G = 250 and NX = 50.Then,suppose government purchases are reduced from G = 250 to G = 240,and at the same time net exports increase from NX = 50 to NX = 70.The net result is an increase in Y (GDP) of
A) 25.
B) 35.
C) 45.
D) 50.
E) 65.
Correct Answer:
Verified
Correct Answer:
Verified
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