Skip to question Assume that the parameters of a particular economy are as follows (all figures are in $billions): C = 100 + 0.75Y I = 50 Refer to the above information to answer this question. If investment were to increase by $25, then what would happen to equilibrium income? Multiple Choice
Skip to question Assume that the parameters of a particular economy are as follows (all figures are in $billions): C = 100 + 0.75Y I = 50 Refer to the above information to answer this question. If investment were to increase by $25, then what would happen to equilibrium income? Multiple Choice
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Skip to questionAssume that the parameters of a particular economy are as follows (all figures are in $billions):
C = 100 + 0.75Y I = 50
Refer to the above information to answer this question. If investment were to increase by $25, then what would happen to equilibrium income?
Multiple Choice
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It would increase by $100.
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It would decrease by $100.
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It would increase by $25.
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It would increase by $18.75.
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It would decrease by $18.75.
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