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If Consumption Is Given by C = 200 + 0

Question 38

Multiple Choice

If consumption is given by C = 200 + 0.75(Y - T) and investment is given by I = 200 - 25r, then the formula for the IS curve is:

A) Y = 400 - 0.75T - 25r + G.
B) Y = 1,600 - 3T - 100r + 4G.
C) Y = 400 + 0.75T - 25r - G.
D) Y = 1,600 + 3T - 100r - 4G.

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