Demand for housing falls-reducing planned investment

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If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd))

-Wouldn't this answer just be GDP will be reduced by 75 billion? I am not sure why the consumption function is given for this problem?

Reference no: EM13771591

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Demand for housing falls-reducing planned investment : If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd)) Wouldn't this answer just be GDP will be reduced by 75 billion? I am n..

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