Consider the Following Information Describing an Economy with Demand-Determined Output

question 66

Multiple Choice

Consider the following information describing an economy with demand-determined output.There is no government or foreign trade.All dollar figures are in billions. 1.equilibrium condition is Y = C + I
2.marginal propensity to save = 0.20
3.the autonomous part of C is $50
4.investment is autonomous and equals $25
TABLE 21-5
Refer to Table 21-5.At the equilibrium level of national income,the level of desired saving will be

• A)equal to consumption expenditures.
• B)$375.
• C)$50.
• D)$25.
• E)$0