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1. Assume that, without taxes the consumption schedule of an economy is as follows: GDP, Billions Consumption, Billions $100 $120 200 200 300 280 400

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1. Assume that, without taxes the consumption schedule of an economy is as follows: GDP, Billions Consumption, Billions $100 $120 200 200 300 280 400 360 500 440 600 520 700 600 [5 marks] b) Derive the savings function [4 marks]

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