Question
Look again at how we arrived at the equation S = I + NX + NPI. Suppose that we define national income as being equal
Look again at how we arrived at the equation S = I + NX + NPI. Suppose that we define national income as being equal to Y + TR, where TR equals government transfer payments, and we define government spending as being equal to G + TR. Show that after making these adjustments we end up with the same saving and investment equation.
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Macroeconomics
Authors: Charles I. Jones
1st Edition
978-0393926385, 0393926389
