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Given the following model for planned consumption expenditures, answer the following questions: Ct=140+0.80(YtTt) where Ct Total planned consumption expenditures in year t Yt Personal income
Given the following model for planned consumption expenditures, answer the following questions: Ct=140+0.80(YtTt) where Ct Total planned consumption expenditures in year t Yt Personal income in year t Tt Total personal taxes due in year t Gt Total government spending in year t and where Tt=50+0.20(Yt1) If total personal income last year was $800, what is the level of total planned consumption expenditures in the current year (year t)? What is the level of saving out of current income in year t? Are consumers saving or dis-saving? What is the value of the marginal propensity to consume in year t
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