Question
Suppose an open economy is described by the following equations: C = C 0 + MPC (Y-T) = 100 + 0.4 (Y-T) Initially the following
Suppose an open economy is described by the following equations:
C = C0+ MPC (Y-T) = 100 + 0.4 (Y-T)
Initially the following values hold: I = 250 G = 300 T = 200 NX = 0
What is the equilibrium Y?
Group of answer choices
A. 950
B. 800
C. 1000
D. 850
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
