Question 1
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Refer to Figure 24.1. Suppose that the consumption function is
C = 200 + 0.4
Yd and taxes are $200 billion, at equilibrium the value of injections are
◦ $1,080 billion.
◦ $840 billion.
◦ $720 billion.
◦ $650 billion.
Question 2
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Refer to Figure 24.1. Suppose that the consumption function is
C = 300 + 0.5
Yd and taxes are $300 billion, at equilibrium the value of autonomous consumption is
◦ $400 billion.
◦ $300 billion.
◦ $200 billion.
◦ $100 billion.