Question
Consider a model of the economy in which:Y = C + I, C = C0+ bY where I = I0, 0 < b < 1
Consider a model of the economy in which:Y = C + I, C = C0+ bY where I = I0, 0 < b < 1 (b, I0 and C0 are constants).
Using Cramer's rule, what are the equilibrium levels of income (Ye) and consumption (Ce) in terms of the constants?
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The Wisdom Of Crowds
Authors: James Surowiecki
1st Edition
0385721706, 9780385721707
