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You Are Given the Following Information About the Canadian Economy

Question 161

Multiple Choice

You are given the following information about the Canadian economy.Autonomous consumption expenditure is $50 billion, investment is $200 billion, and government expenditure is $250 billion.The marginal propensity to consume is 0.7 and net taxes are $250 billion.Net taxes are assumed to be constant and not vary with income.Exports are $500 billion and imports are $450 billion. The consumption function in billions of dollars is


A) C = 50 + 0.7Y - 250.
B) C = 50 + 0.7Y - 250) .
C) C = 0.7Y - 250) .
D) C = 50 + 0.7Y.
E) C = 50 + 0.7YD - 250) .

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