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The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

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The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80
• net tax rate (t) = 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80 • net tax rate (t) = 0.15 • no foreign trade • fixed price level • all expenditure and income figures are in billions of dollars.   FIGURE 22-3 Refer to Figure 22-3.Which of the following equations describes the aggregate expenditure function for this economy? A) AE = 1000 + (0.68) Y B) AE = 1000 + (0.80)    C) AE = 1000 + (0.80) Y + 0.15 Y<sub>D</sub> D) AE = 1975 + (0.68) Y E) AE = 1975 + (0.65) Y FIGURE 22-3
Refer to Figure 22-3.Which of the following equations describes the aggregate expenditure function for this economy?

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