An economy's consumption function is depicted in the table below.
Disposable Income (Yd) ($, billions) Planned Investment ($, billions) Consumption ($, billions) Government Spending ($,billions) Net Exports ($,billions) Taxes ($, billions)
0 100 100 10 10 10
100 100 190 10 10 10
200 100 280 10 10 10
300 100 370 10 10 10
400 100 460 10 10 10
500 100 550 10 10 10
a. When disposable income is equal to $200 billion total planned expenditures equal
a. $200 billion
b. $280 billion
c. $400 billion
d. $100 billion
b. Therefore, in this model when investment, government spending, and net exports are included, and the disposable income is $200 billion, unplanned inventory is valued at
a. -$80 billion
b. -$190 billion
c. -0.40 billion
d. $100 billion