If Y = $100 billion, then C = $50 billion, and I = $60 billion. What will autonomous investment be when Y = $200 billion and C = $100 billion?
A)$50 billion
B)$60 billion
C)$100 billion
D)$120 billion
E)$200 billion

Question

Quizplus · Accepted Answer

Autonomous investment remains constant regardless of changes in income (Y). Since initial investment (I) is $60 billion when Y is $100 billion, it remains $60 billion when Y is $200 billion.

If Y = $100 Billion, Then C = $50 Billion