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The diagram to the right shows the level of autonomous investment expenditures in an economy. Recall that in a closed economy with no government
The diagram to the right shows the level of autonomous investment expenditures in an economy. Recall that in a closed economy with no government the aggregate expenditure function takes the following form: 400- Saving and Investment AE = C +1 where C=C + MPCX Y and I = 10- The aggregate expenditure function of a closed economy with no government is given as follows: AE = 400 +0.8Y Using the information provided above, we can express the saving function as follows: S=xY (Round your response for the intercept term to the nearest whole number and for the slope term to one decimal place.) Desired Saving, Desired Investment 300- 200- 100- -100- 400 800 1,200 1,600 2,000 2,400 2,800 3,200 -200- -300- Actual National Income Q
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