Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following Open Economy with the following parameters, in billions: Consumption (C) = 500 + .75(YD). Personal Disposable Income (YD) = Y - T

image text in transcribed
image text in transcribed
Consider the following Open Economy with the following parameters, in billions: Consumption (C) = 500 + .75(YD). Personal Disposable Income (YD) = Y - T + TR Government Spending (G) = 800. Transfers (TR) = 400. Taxes (T) = (1/3)Y. Investment (l)=400. Exports (X)=200. Imports (IM) 400. In this Economy, Equilibrium Income is ,the Government Budget is and the Government Spending/Investment Multiplier is Select one: a. 3600 billion, balanced, 2 b. 6000 billion, Surplus of 600 billion, 4 c. 3600 billion, Surplus of 80 billion, 4 d. 4500 billion, Surplus of 100 billion, 2.5 e. 2600, Deficit of 333 billion, 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Policy And Practice

Authors: Frederic Mishkin

2nd Edition

0133424316, 978-0133424317

More Books

Students also viewed these Economics questions

Question

-1/6 3/8 Find the difference by hand.

Answered: 1 week ago

Question

5. Give some examples of hidden knowledge.

Answered: 1 week ago