In a Certain Economy,the Components of Planned Aggregate Expenditure Are

Multiple Choice

In a certain economy,the components of planned aggregate expenditure are given by:
C = 60 + 0.6(Y - T) - 1,000r
I = 200 - 1,000r
G = 200
NX = 50
If net taxes equal 100 and the central bank sets the interest rate equal to 0.05 (5%) ,short-run equilibrium output equals

A) 825.
B) 875.
C) 925.
D) 975.
E) 1,025.