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      Question

      In a two-sector economy, the consumption function is

      given as:                                                               C=100+0.8Y where C is consumption and Y is national income. If autonomous investment (I) is fixed at 200 units, what is the equilibrium level of national income?
      A 800 units Correct Answer Incorrect Answer
      B 1,200 units Correct Answer Incorrect Answer
      C 1,500 units Correct Answer Incorrect Answer
      D 3,000 units Correct Answer Incorrect Answer

      Solution

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