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    Exam 11: The Income-Expenditure Model
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    Assume That the Consumption Function Is C = 100
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Assume That the Consumption Function Is C = 100

Question 204

Question 204

Multiple Choice

Assume that the consumption function is C = 100 + 0.8Y, income (Y) is $1,000 billion, and investment I is $50 billion, then the unplanned inventory change will be $ _______ billion.


A) - 50
B) 0
C) 50
D) 100

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