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

question 48

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,what is the level of desired consumption expenditures?

• A)$68.75
• B)$125
• C)$150
• D)$350
• E)$375