Refer to Figure above. If I^(P)=100 and G=200 and taxes are a flat amount, T, then the consumption function is given by:
C=100+0.6Y
C=100+0.8(Y-T)
C=100+0.8Y
There is not enough information to answer the question.
Refer to Figure above.If IP-100 and G-200 and taxes are a flat amount,T,then the consumption function is given by:
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OC=100+0.6Y
C=100+0.8(Y-T
OC=100+0.8Y
O There is not enough information to answer the question