How much should they increase government spending

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The consumption function is C = $800 billion + 0.9YD, where C is consumption spending and YD is disposable income. The government wants to increase output (RGDP) by $40 billion. By how much should they increase government spending?

$44.44 billion

$36 billion

$4 billion

$4.44 billion

Reference no: EM131392234

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