Correct Answer: Option D

Explanation

y = \(\frac{a + i + G}{1 - b}\)

where b = 0.75
 

= \(\frac{100 + 50 + 200}{1 - 075}\)

= \(\frac{350}{0.25}\)

= 1400

Alternatively:
Y = C + I + G
Y = 100 + 0.75Y + 50 + 200
Y - 0.75Y = 350
Y( 1 - 0.75) = 350
 

= \(\frac{350}{0.25}\)

Y = 1400

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