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Suppose a simple economy has no government, so that the aggregate expenditure function is: AE = C + I + X - IM where X
Suppose a simple economy has no government, so that the aggregate expenditure function is: AE = C + I + X - IM where X = 60 and IM = 80 + 0.2Y.
The following graph is China's consumption schedule and the amount of investment is $40 billion.
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