Suppose C = 100 + 0.5(Y - T) and T = 200,I = 150,G = 250 and NX = 50.Then,an increase in business investment from I = 150 to I = 175 will result in an increase in Y (GDP) of
A) 25.
B) 35.
C) 50.
D) 60.
E) 75.
Correct Answer:
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