Question: Assume a consumption function that takes on the following algebraic form: C = 400+ 0.6 Y. Assume that Y = 7600 what is the level

Assume a consumption function that takes on the

Assume a consumption function that takes on the following algebraic form: C = 400+ 0.6 Y. Assume that Y = 7600 what is the level of consumption at this income level. Answer: 1 Determine the impact of a decrease in tax of $3 billion on aggregate level of output at equilibrium when the MPS is 0.25 Select one & -S12 Billion $12 Billion 59 Billion 59 Billon

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