Question
For an economy where: C = 300 + 0.8Y Y* = 3,000 a) Draw a Savings-Investment graph. Include the slope and intercept for both functions.
For an economy where:
C = 300 + 0.8Y
Y* = 3,000
a) Draw a Savings-Investment graph. Include the slope and intercept for both functions.
b) On your graph from part (a), demonstrate the effect of an improvement in consumers' expectations of the future. Show where the new equilibrium point will occur.
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International Business
Authors: Alan M. Rugman, Simon Collinson
6th edition
273760971, 978-0273760979
