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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?

$280 billion

$320 billion

$262 billion

$198 billion

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M967761

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