Question #2353

Calculate the total change in aggregate demand because of an initial $300 decrease in investment spending, given that C = 150 + 0.50YD.

$1,200 decrease

$300 decrease

$150 decrease

$600 decrease

$1,200 decrease

$300 decrease

$150 decrease

$600 decrease

Expert's answer

Change of C = 150 0.5 300 = 300

So we have $300 decrease

So we have $300 decrease

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