In an economy without government purchases, government transfers, or taxes, aggregate autonomous consumer spending is $250 billion, planned investment spending is $100 billion, and the marginal propensity to consume is 0.6. What is the expression for planned aggregate spending?
A) AEPlanned = $100 + 0.6* YD
B) AEPlanned = $250 + 0.4* YD
C) AEPlanned = $350 + 0.6* YD
D) AEPlanned = $150 + 0.4* YD
Correct Answer:
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