9. An economy is characterised by the following equations: C = 4 + 0.75Yd; Tr = 8;

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9. An economy is characterised by the following equations:

C = 4 + 0.75Yd; Tr = 8; T = 0.2Y;

G = 120; and I = 110 where C is consumption spending, Yd is personal disposable income, Tr is transfer payment, T is tax, Y is income, G is government spending and I is investment expenditure.

Subsequently the economy becomes an open economy with X = 55 and imports M =

5 + 0.1Y.

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Macroeconomics Theory And Policy

ISBN: 9780070091450

3rd Edition

Authors: D.N. Dwivedi

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Question Posted: Nov 07, 2024 04:00 AM

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9. An economy is characterised by the following equations: C = 4 + 0.75Yd; Tr = 8;

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Macroeconomics Theory And Policy

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