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

Assume a consumption function that takes on the following algebraic form:

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: 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: a. -$12 Billion $12 Billion -S9 Billion od 59 Billion

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