Assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to spend $200 billion, or I = 200, (iii) government spends $500 billion and tax revenue is $200 billion, (iv) consumption is a linear function of disposable income, C=100+0.8Yd What is the saving equation? Please answer briefly
Assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to spend $200 billion, or I = 200, (iii) government spends $500 billion and tax revenue is $200 billion, (iv) consumption is a linear function of disposable income, C=100+0.8Yd What is the saving equation? Please answer briefly
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter9: Classical Macroeconomics And The Self Regulating Economy
Section: Chapter Questions
Problem 4QP
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Assume an economy in which:
(i) there are no exports and no imports,
(ii) investors always want to spend $200 billion, or I = 200,
(iii) government spends $500 billion and tax revenue is $200 billion,
(iv) consumption is a linear function of disposable income, C=100+0.8Yd
What is the saving equation? Please answer briefly
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