If the Consumption Function Is Given by C = 500

Multiple Choice

If the consumption function is given by C = 500 + 0.5(Y - T) , and Y is 6,000 and T is given by T = 200 + 0.2Y, then C equals:

A) 2,500.
B) 2,800.
C) 3,500.
D) 4,200.