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Consider the following economy Ca = 1850 - 15 R; c= 0.60 ; Ta= 1,800; t = 0 ; Ip = 20 (100 - 1.2R
Consider the following economy
Ca = 1850 - 15 R; c= 0.60 ; Ta= 1,800; t = 0 ; Ip = 20 (100 - 1.2R ) ;
G = 2,000; X = 1,600 ; NX = -1,255. Assume nx = 0.
a) Compute the marginal propensity to save
b) Calculate the amount of imports for this country
c) Compute the multiplier
d) Derive the equation of the autonomous spending and compute its value for R = 4
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a C 060 MPC MPS 1 MPC 1 060 MPS 040 b NX X M 1255 1600 M M ...Get Instant Access to Expert-Tailored Solutions
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