Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 Suppose the country of KU opens-up to international trade, but still has no government sector. Now it can be described by the follow-

image text in transcribed
Question 4 Suppose the country of KU opens-up to international trade, but still has no government sector. Now it can be described by the follow- ing equations. C = 200 + 0.6Y TH = 80 X = 60 M = 0.1Y (a) What is the magnitude of the marginal propensity to import? (0.1) (b) Calculate equilibrium GDP. (Y = 680) (c) Calculate equilibrium consumption and imports ( C. = 608, M' = 681 (d) What is the value of net exports in equilibrium? (NX = -8) (e) What is the magnitude of the multiplier in KU? (2.0) (f) In the two-sector model we could write the condition for equi- librium in terms of saving and planned investment. What would

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

China's Air Pollution Problems

Authors: Claudio O Delang

1st Edition

1317209281, 9781317209287

More Books

Students also viewed these Economics questions

Question

2. It is the results achieved that are important.

Answered: 1 week ago