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If Total Autonomous Spending Is A? = 800, the Marginal

Question 6

Multiple Choice

If total autonomous spending is A? = 800, the marginal propensity to save is mps = 0.2, and the marginal tax rate is t = 0.25, what is the level of equilibrium income?


A) 800
B) 1,000
C) 2,000
D) 3,200
E) 4,000

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