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Consider an economy in which the planned spending function is defined as follows: E=C+I , while the consumer function is represented as C= 100 +
Consider an economy in which the planned spending function is defined as follows: E=C+I , while the consumer function is represented as C= 100 + 0.8 Y, autonomous investments are 50, output is 700.
determine;
a) amount of consumer spending
b) savings
c) the average propensity to consume
d) the average propensity to save
e) the equilibrium volume of output
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