Use the Information Below to Answer the Following Questions

Use the information below to answer the following questions.
Fact 11.5.1
An economy has a consumption function of C = 10 + 0.8Y, investment equal to 6, government expenditure equal to 10, exports equal to 10, and an import function of M = 0.1Y.
-Refer to Fact 11.5.1.What is the equation for the aggregate expenditure curve for this economy?

A) AE = 26 + 0.8Y
B) AE = 16 + 0.7Y
C) AE = 36 + 0.7Y
D) AE = 36 - 0.7Y
E) AE = 36 + 0.9Y

Correct Answer:

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