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Considering a small closed economy without government, investment expenditures are 180 billion dollars where consumption function is C=120+0.75Y a) Explain it meaning of autonomous expenditure

Considering a small closed economy without government, investment expenditures are 180 billion dollars where consumption function is C=120+0.75Y

a) Explain it meaning of autonomous expenditure in an economy (3points)

b) how much is autonomous expenditures in this economy?

c) what is the equilibrium level of income

d) calculate the multiplier

e)if the investment expenditures decrease by 30 billion dollar, what would be the change in income level

f) what is the level of saving in equilibrium

g) how much is the new equilibrium income after the change is imposed in part e

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