Consider the following model. Expenditure is given by: E=C+I+G. The consumption function is specified as: C = c0 +cY. We assume a closed macroeconomics system so that: Y=E. If the model parameters are configured such that I= 500, G=2000, c0-1000 and c=0.8, what will the level of consumption expenditure, C, be equal to? a. 4,375 b. 15,000 c. 14,000 Cd. 14,500

Consider the following model. Expenditure is given by: E=C+I+G. The consumption function is specified as: C = c0 +cY. We assume a closed macroeconomics system so that: Y=E. If the model parameters are configured such that I= 500, G=2000, c0-1000 and c=0.8, what will the level of consumption expenditure, C, be equal to? a. 4,375 b. 15,000 c. 14,000 Cd. 14,500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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