The Letters Y, C, I_g, X, and M Stand for GDP

question 144

Multiple Choice

The letters Y, C, I_g, X, and M stand for GDP, consumption, gross investment, exports, and imports respectively.Figures are in billions of dollars.Ca = 25.75(Y - T ) Ig = Ig0 = 50
Xn = Xn0 = 10
G = G0 = 70
T = T0 = 30
Refer to the above information.If government desired to raise the equilibrium GDP to $650, it could:

• A)raise G by $45 and reduce T by $10.
• B)raise G by $40 and reduce T by $30.
• C)raise G by $30 or reduce T by $40.
• D)raise both G and T by $40.