Suppose the equilibrium level of national income is $800 billion and the MPC is 0.8 . Suppose as well that people decide to increase their saving by $30 billion. Before this change, people intended to save $100 billion and producers intended to invest $100 billion. The new equilibrium level of national income is

a. $600 billion
b. $650 billion
c. $680 billion
d. $730 billion
e. $800 billion


B

Economics

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