If Autonomous Consumption Is $1,000,the MPC Is 0

question 167

Multiple Choice

If autonomous consumption is $1,000,the MPC is 0.75,net taxes are $500,investment spending is $800,and government purchases equals $500,and NX = $0,what is equilibrium GDP?

• A) $1,800
• B) $1,925
• C) $2,566.7
• D) $7,200
• E) $7,700

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