Use the following information to answer the next question.C = A + .875(Y - T)A = $10,000I = $2,000G = $2,500T = $1,000NX = $1,025What will be the change in consumption if net exports decrease by $250?

A. Consumption will not change.
B. Consumption will fall by $1,750.
C. Consumption will rise by $218.75.
D. Consumption will fall by $250.


Answer: B

Economics

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