Question: Another multiple choice answer for the last one is 7.75 billion, it was just cut off. Thank you! Suppose that national income in a country

Another multiple choice answer for the last one is 7.75 billion, it was just cut off. Thank you!

Another multiple choice answer for the last one is 7.75 billion, it

Suppose that national income in a country is $12 billion, taxes paid by households are $3 billion, household consumption is $7 billion, and the marginal propensity to consume (MPC) is 0.75. On the following graph, use the blue line (circle symbol) to plot the economy's consumption function. (?) 20 O 18 16 Consumption Function CONSUMPTION (Billions of dollars) N 0 2 6 8 10 12 14 16 18 20 DISPOSABLE INCOME (Billions of dollars) Suppose now that country's national income increases to $13 billion. Assuming the amount paid in taxes is fixed at $3 billion and that MPC = 0.75, what will be the new household consumption? $10.75 billion $9.75 billion $7.5 billion O

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