By using the same approach for investment and government spending, we obtain expressions for Id, If, Gd, and Gf :4 EP* ) 1-a EP* -a

= aS20 p I(r), If = (1

a) S20 p 1(r), EP* 1-a EP* -a

= a S20 G, Gf = (1 ot)S20 ) G.

PY PcC PcI + PcG + PEX -EP* [Cf + + Gf]

= PCd PId PGd PEX Y Cd ± Id ± Gd + EX,

(11.2'

Dds rises, households chooco estic sources. By substituting

(11.26)

(11.27)

(11.28)