Question: l Consider the goods market model where consumption is given by: C = co + c1 (Y- 1), investment given by: I = b0 +

l Consider the goods market model where consumption is given by: C = co + c1 (Y- 1), investment given by: I = b0 + b1Y- b2i, and G and T are given. Assuming co = 100, 01 = 0.6, Do = 150, D1 = 0.2, and b2 = 1,000. Keeping all other things constant, what will be the change in the equilibrium investment (I*) in the goods market if G is increased by $20? 0 a, All of the answers here are incorrect O b. $20 qum o d. $50 0 e. $10

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