If the Consumption Function Is Given by C = 500

question 79

Multiple Choice

If the consumption function is given by C = 500 + 0.5(Y - T) , and Y is 6,000 and T is given by T = 200 + 0.2Y, then C equals:

• A) 2,500.
• B) 2,800.
• C) 3,500.
• D) 4,200.

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