In a Certain Economy, the Components of Planned Spending Are

question 47

Multiple Choice

In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T) - 300r
Ip = 200 - 400r
G = 200
NX = 10
T = 150
Given the information about the economy above, which expression below gives planned aggregate expenditure (PAE) ?

• A) [790 - 700r] + 0.8Y
• B) [790 - 700r]
• C) [910 - 700r]
• D) [910 - 700r] + 0.8Y

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