Question: The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.35 of national income, the MPC

The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.35 of national income, the MPC out of after-tax income is 0.8, investment is 110, government spending is 80, exports are 63, and imports are 0.2 of after-tax income.

National Income

After-tax income

Consumption

I+G+X

Minus Imports

Aggregate Expenditures

100

104

200

300

400

500

600

What does consumption equal when income equals 400?

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