Refer to the information provided in Table 24.8 below to answer the question(s) that follow.Table 24.8All Figures in Billions of DollarsOutput (Income)Net TaxesConsumption Spending (C = 100 + 0.9Yd)SavingsPlannedInvestment PurchasesGovernment Spending2,6001002,3501501502002,8001002,5301701502003,0001002,7101901502003,2001002,8902101502003,4001003,0702301502003,6001003,2502501502003,8001003,430270150200Refer to Table 24.8. If taxes are reduced by $50 billion and government spending is reduced by $50 billion, the new equilibrium level of income
A. is $3,550 billion.
B. is $3,350 billion.
C. is $1,600 billion.
D. cannot be determined from this information.
Answer: A
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A. $5500 to be received ten years from now B. $5075 to be received three years from now C. $5000 D. $5050 to be received two years from now