If the foreign sector is added to the model and there is a positive marginal propensity to

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If the foreign sector is added to the model and there is a positive marginal propensity to import z, find

(a) the reduced form,

(b) the equilibrium level of income, and

(c) the effect on the multiplier, given image text in transcribed

where C0 = 70, I0 = 90, G0 = 65, X0 = 80, Z0 = 40, b = 0.9, and z = 0.15. image text in transcribed

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Schaum S Outline Of Mathematical Methods For Business Economics And Finance

ISBN: 978-1264266876

2nd Edition

Authors: Luis Moises Pena Levano

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Question Posted: Sep 20, 2024 06:03 AM

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If the foreign sector is added to the model and there is a positive marginal propensity to

Question:

Y=C+1+G+ (X - Z) I = lo C = Co + by G = Go Z = Zo + ZY X = Xo

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Schaum S Outline Of Mathematical Methods For Business Economics And Finance

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