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!

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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