Question
The economy of Richmond Hill has a consumption function of C=10+0.8Y, investment equal to 6, government purchases equal to 10, exports equal to 10, and
The economy of Richmond Hill has a consumption function of C=10+0.8Y, investment equal to 6, government purchases equal to 10, exports equal to 10, and an import function of IM=0.1Y. What is the level of consumption when the economy is in equilibrium?
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Micromotives And Macrobehavior
Authors: Thomas Schelling
1st Edition
0393329461, 9780393329469
