If the 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 not sure why the consumption function is given for this problem?

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Business Economics: If the demand for housing falls reducing planned investment
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