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Assume a Model with No Government, Where Consumption Is the Only

Question 28

Multiple Choice

Assume a model with no government, where consumption is the only component of aggregate demand.If the consumption function is of the form C = 400 + (0.9) Y, what is the equilibrium level of consumption?


A) 400
B) 1) 000
C) 1,600
D) 3,600
E) 4,000

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