Th e equations in an economy are given as: Consumption function C = 50 + bYd Investment

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Th e equations in an economy are given as:

Consumption function C = 50 + bYd Investment function ⎯I = 40 Tax T = 20 Government expenditure G = 40 Exports X = 20 Imports M = 20 + 0.1Y Marginal propensity to consume b = 0.75

(a) Find the equilibrium level of income.

(b) Find the value of the foreign trade multiplier.

(c) Find the equilibrium level of imports.

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Managerial Economics

ISBN: 9788131775622

1st Edition

Authors: Vanita Agarwal

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Question Posted: Nov 07, 2024 04:00 AM

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Th e equations in an economy are given as: Consumption function C = 50 + bYd Investment

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Managerial Economics

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