Question
Given the following model: Y=C+I C = a + bYd T=T0+tY Yd= Y-T where I = 30, a = 85, b = 0.75, t =
Given the following model:
Y=C+I
C = a + bYd
T=T0+tY
Yd= Y-T
where I = 30, a = 85, b = 0.75, t = 0.2, and T0= 20.
a)Solve for the equilibrium national income Y.
b)What is the value of the investment multiplier?
c)What is the value of the multiplier if t = 0?
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Issues in Economics Today
Authors: Robert C. Guell
8th edition
1259746399, 1259746390, 978-1259746390
