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Question 106

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Use the information below to answer the following questions.
Fact 27.5.1
The economy of Beverly Hills 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 27.5.1. If autonomous consumption increases by 10, what is the new equilibrium real GDP for this economy?


A) 153.33
B) 120
C) 86.67
D) 460
E) 230

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