The economy of Bananaland can be characterized by Equation 24.5.EQUATION 24.5:C = 2,000 + 0.75YdT = 200G = 400I = 500Refer to Equation 24.5. If government spending in Bananaland increases by $50, equilibrium output increases by
A. $100.
B. $200.
C. $400.
D. $800.
Answer: B
Economics
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