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In a private closed economy (a) the marginal propensity to save is 0.25, (b) consumption equals income at $120 billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income?

A) $280 billion

B) $320 billion

C) $262 billion

D) $198 billion

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M965191

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