Assume that the economy can be defined by the following set of equations: C = 100 + 0.2 Yd (where C is consumption and Yd is disposable income) |= 500 – 30r (where I is units) G = 0.2 Y (where G is government expenditure and Y is income) Assuming that government maintains a balanced budget policy (i.e., G =T) Find the investment multiplier: investment and r = 5

ENGR.ECONOMIC ANALYSIS
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Assume that the economy can be defined by
the following set of equations:
C = 100 + 0.2 Yd (where C is consumption and
Yd is disposable income)
| = 500 – 30r (where I is investment and r = 5
units)
G = 0.2 Y (where G is government
expenditure and Y is income)
Assuming that government maintains a
balanced budget policy (i.e., G =T)
Find the investment multiplier:
А.
30
В.
-30
С.
46.9
D.
-46.9
%3D
Transcribed Image Text:Assume that the economy can be defined by the following set of equations: C = 100 + 0.2 Yd (where C is consumption and Yd is disposable income) | = 500 – 30r (where I is investment and r = 5 units) G = 0.2 Y (where G is government expenditure and Y is income) Assuming that government maintains a balanced budget policy (i.e., G =T) Find the investment multiplier: А. 30 В. -30 С. 46.9 D. -46.9 %3D
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