Question: Consider a 4-sector economy, the consumption spending is C = 500+0.8(Y-T) , taxes are T = 10 + 0.2Y , and imports are M=0.1Y. Planned

Consider a 4-sector economy, the consumption spending is

C = 500+0.8(Y-T), taxes are T = 10 + 0.2Y, and imports are M=0.1Y. Planned investment is Ip=300, government spending is G=250, and exports are X=10. What is the slope of the planned aggregate expenditure (PAE) line?

0.86

0.50

0.52

0.74

0.54

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