Consider the Following Information Describing a Closed Economy with No

question 118

Multiple Choice

Consider the following information describing a closed economy with no government and where aggregate output is demand determined. All dollar figures are in billions.
1. the equilibrium condition is Y = C + I
2. the marginal propensity to consume is 0.90
3. the autonomous part of C is $300
4. investment is autonomous and is $100
TABLE 21-3
-Refer to Table 21-3. The correct expression for the aggregate expenditure function for this economy is

• A) AE = $760 billion
• B) AE = $300 billion + 0.9Y
• C) AE = $400 billion + 0.9Y
• D) AE = $400 billion + 0.1 YD.
• E) AE = $200 billion + 0.1 YD.