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If I = $2,000,G = $4,000,T = $1,000,NX = $0,autonomous

Question 55

Multiple Choice

If I = $2,000,G = $4,000,T = $1,000,NX = $0,autonomous consumption = $1,000 and the marginal propensity to consume is 0.6,what is the equilibrium value of output?


A) $16,000
B) $7,000
C) $6,400
D) $3,840
E) $8,000

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