Question
Assume the following information for the economy: C = c 0 + c 1 Yd, where Yd = (1-t)YC = 200 + 0.75(1-.2)Y I =
Assume the following information for the economy:
C = c0+ c1Yd, where Yd = (1-t)YC = 200 + 0.75(1-.2)Y
I = II = 700
G = GG = 800
X = XX = 400
M = mYM = 0.1Y
Show that (S - I) + (T - G) + (M - X) = 0
I keep getting 40 as the answer for my equation, I think I am messing up the savings?
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Latin America's Economy Diversity, Trends, And Conflicts
Authors: Eliana Cardoso, Ann Helwege
1st Edition
0262531259, 9780262531252
