A media company wants to know how much consumers spend in a closed economy. The answer is not readily available, but we know the following: Consumption: C = 50 + 0.6(Y - T) • Investment: 1 = 40-500 i • Taxes: T = 2C . Government spending: G = 20 where Y is GDP and i is the interest rate. At the time of the analysis, the central bank made sure that the interest rate. was 4% What is the level of consumption C? Select one: a 155 b. 170 c. 195 d. 220
A media company wants to know how much consumers spend in a closed economy. The answer is not readily available, but we know the following: Consumption: C = 50 + 0.6(Y - T) • Investment: 1 = 40-500 i • Taxes: T = 2C . Government spending: G = 20 where Y is GDP and i is the interest rate. At the time of the analysis, the central bank made sure that the interest rate. was 4% What is the level of consumption C? Select one: a 155 b. 170 c. 195 d. 220
Chapter8: The Keynesian Model
Section: Chapter Questions
Problem 17SQ
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A media company wants to know how much consumers spend in a closed economy. The answer is not readily
available, but we know the following:
Consumption: C = 50 + 0.6(Y - T)
• Investment: 1 = 40-500 i
• Taxes: T = 2C . Government spending: G = 20
where Y is
What is the level of consumption C?
Select one:
a 155
b. 170
c. 195
d. 220
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