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Question 16 6 pts If consumer spending is C = $120 billion +.75(4), break-even income (Y) is equal to: O $120 billion. $250 b
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Answer #1

16. Break even is the point when Consumer spending = income.

C= 120+ 0.75Y

120+0.75Y = Y

120= 0.25Y

Y = 120/0.25

Y = $480 billion. (i.e the break-even income level)

Hence, option(C) is correct.

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