Suppose we have the following consumption function in an economy C = 2000 + 0.9YD. How much government spending has to be increased in order to have an increase in equilibrium output equal to 1000? a. 100. b. 200. c. 250. d. 1000. e. none of these. f. do not have adequate information.
Suppose we have the following consumption function in an economy C = 2000 + 0.9YD. How much government spending has to be increased in order to have an increase in equilibrium output equal to 1000? a. 100. b. 200. c. 250. d. 1000. e. none of these. f. do not have adequate information.
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 15E
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Question
Suppose we have the following consumption function in an economy C = 2000 + 0.9YD. How
much government spending has to be increased in order to have an increase in equilibrium
output equal to 1000?
a. 100.
b. 200.
c. 250.
d. 1000.
e. none of these.
f. do not have adequate information.
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