In a Private Closed Economy (A) the Marginal Propensity to Save

question 163

Multiple Choice

In a private closed economy (a) the marginal propensity to save is 0.25, (b) consumption equals income when consumption is $120 billion, and (c) the level of investment is $40 billion.What is the equilibrium level of income?

• A)$280 billion
• B)$320 billion
• C)$262 billion
• D)$198 billion

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