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3) Given the following information: C = 40 + 0.8Yd I* = 50 and assuming fixed prices a) What is equilibrium NP? b) If desired

3) Given the following information:

C = 40 + 0.8Yd I* = 50 and assuming fixed prices

a) What is equilibrium NP?

b) If desired investment increases 25 what is the new equilibrium level of NP?

c) What is the new equilibrium level of savings?

d) What is the new equilibrium level of consumption?

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