Planned spending is as follows: C = 600 + 0.7(Y – T) – 200r, IP = 200 – 500r, G = 200, NX = 10 and T = 150. Which of the following also states PAE?   A. [905 – 700r] + 0.3Y B. [905 – 700r] C. [910 – 700r] D. [905 – 700r] + 0.7Y

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter2: Fundamental Economic Concepts
Section: Chapter Questions
Problem 5E
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Planned spending is as follows: C = 600 + 0.7(Y – T) – 200r, IP = 200 – 500r, G = 200, NX = 10 and T = 150. Which of the following also states PAE?

 

A. [905 – 700r] + 0.3Y

B. [905 – 700r]

C. [910 – 700r]

D. [905 – 700r] + 0.7Y

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