An economy is below full employment equilibrium when national income is $40 000 million and government spending is $15 000 million. For each extra $100 added to national income, $15 goes in taxes, $30 is spent on imports and $5 is saved. If national income is to be increased to the full employment level of $50 000 million, to what level must the government increase its own spending?
- A$15 500 million
- B$20 000 million
- C$25 000 million
- D$35 000 million