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Consider the goods market model where consumption is given by: C = c + G (Y - T), investments given by: I = b +
Consider the goods market model where consumption is given by: C = c + G (Y - T), investments given by: I = b + b,Y - bi, and G and T are given. Assuming Co = 100, C1 0.5, bo = 150, b1 = 0.3, and b2 = 1,000. Keeping all other things constant, what will be the change in the equilibrium investment (I*) in the goods market if autonomous consumption, Co, is increased by $10
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