If the level of autonomous spending is $6000 billion, the marginal propensity to expend is .4, and the level of national income is $10000, planned expenditures would be equal to
A) $10000 billion and inventory accumulation would equal $0 billion.
B) $12000 billion and inventory accumulation would equal -$2000 billion.
C) $12000 billion and inventory accumulation would equal $2000 billion.
D) $15000 billion and inventory accumulation would equal $5000 billion.
Correct Answer:
Verified
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