If national income is $40 000 million and government spending is $15 000 million, the economy is in equilibrium but still below full employment. For every $100 increase in national income, $15 is paid in taxes, $30 is used on imports and $5 is saved. To increase national income to the full employment level of $50 000 million, to what level will the government have to raise its own spending?
- A$15 500 million
- B$20 000 million
- C$25 000 million
- D$35 000 million