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C= 2000 + 0.5(Y-T)

                      
T= 200

                      
G= 400

      
                I=
500

*Refer to Table 11.1. The equilibrium level of income is:

(A)4,800. (B) 5,800. (C) 4,600. (D) 5,600.

* Refer to Table 11.1. If government spending increases by $100,
equilibrium output

increases by:

(A)$100. (B) $200. (C) $400. (D) $800.

* Suppose marginal propensity to save equals 20%, tax rates
equal 8%, and marginal

propensity to import equals 10%, what will the spending
multiplier be:

(A)2.13 (B) 1.37 (C) 2.78 (D) 2.39

.*If an economy’s marginal propensity to consume is 0.6 and
marginal propensity to

import is 0.1, then an increase in government spending of $1,000
will increase

(A)$1,250 (B) $1,667 (C) $2,000 (D)
$2,500