Question

The consumption equation is represented as C = 250 +0.75YD. Assume that government spending increases by 100 for the economy. Given the above information, we know that equilibrium output will
increase by:

Select one:
a. 1000
b. 400.
c. 200.
d. 800

= 400​

Answer 1

Answer:

400

Explanation:

400 A larger increase in output and a

smaller decrease in the interest rate. A larger increase in output and a

smaller decrease in the interest rate. A larger increase in output and a

smaller decrease in the interest rate. A larger increase in output and a

smaller decrease in the interest rate. A larger increase in output and a

smaller decrease in the interest rate.