In a private closed economy (a) the marginal propensity to save is 0.2, (b) consumption equals income when consumption is $120 billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income? Multiple Choice $320 billion $280 billion

In a private closed economy (a) the marginal propensity to save is 0.2, (b) consumption equals income when consumption is $120 billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income? Multiple Choice $320 billion $280 billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In a private closed economy (a) the marginal propensity to save is 0.2, (b) consumption equals income when consumption is $120
billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income?
Multiple Choice
$320 billion
$280 billion
$198 billion
$262 billion

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