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Consider the macroeconomic model described by the system of equations: (i) Y=C+I+G (ii) C =f(Y-T,r) (iii) I=h(r) where f and h are given functions, Y
Consider the macroeconomic model described by the system of equations: (i) Y=C+I+G (ii) C =f(Y-T,r) (iii) I=h(r) where f and h are given functions, Y is national income, C is consumption, I is investment, G is constant public expenditure, T is tax revenue and r is the interest rate. Assume too that 0
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