An an economy without taxes andimports, an increase in investment of$50 billion increases equilibrium expenditure by $100
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Question:
An an economy without taxes andimports, an increase in investment of$50 billion increases equilibrium expenditure
by $100
100 billion.
What are the values of the multiplier and the slope of the AEcurve?
An economy has a consumption function of C= 10+ 0.8Y, investment of6, government expenditure of10, exports of10, and an import function of M= 0.1Y.
What is the multiplier for thiseconomy?
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