Answer:
Consumption function, \[C=200+0.75Y\] Investment, I = 4,000 Now \[Y=C+I\] or \[Y=200+075Y+4,000\] \[Y0.75Y=4,200\] or \[0.25Y=4,200\] \[\Rightarrow \] \[Y=4,200\times ~\frac{100}{25}\] Income, \[Y=16,800\] Consumption expenditure, \[C=200+0.75Y\] \[=200+0.75(16,800)\] \[=200+12,600=12,800\]
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