Author Question: Let C = 200 + .8(Y-T), planned investment equals 150, and T equals 200 . If the equilibrium level of ... (Read 117 times)

mckennatimberlake · **on:** Jun 30, 2018

Let C = 200 + .8(Y-T), planned investment equals 150, and T equals 200 . If the equilibrium level of income is 2,000, then the level of government spending needed to make this true is

a. 210.
b. 250.
c. 50.
d. 10.
e. none of the above.

Question 2

Why do consumers benefit from pay-as-you-go social security?

A) It keeps inflation in check as money is redistributed.
B) It is a better way than taxes to finance the government.
C) It forces people to save more than they would otherwise.
D) With sufficiently high population growth, many young contribute to the benefits of the old.