09. Consider the following model. Expenditure is given by: E=C+I+G The consumption function is specified as: C=c+cY We assume a closed macroeconomic system so that: Y=E Which is the correct representation of income as a function of autonomous expenditures and the marginal propensity to consume?

09. Consider the following model. Expenditure is given by: E=C+I+G The consumption function is specified as: C=c+cY We assume a closed macroeconomic system so that: Y=E Which is the correct representation of income as a function of autonomous expenditures and the marginal propensity to consume?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

09. Consider the following model. Expenditure is given by:
E=C+I+G
The consumption function is specified as:
C=co+cY
We assume a closed macroeconomic system so that:
Y=E
Which is the correct representation of income as a function of autonomous expenditures and the
marginal propensity to consume?

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