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the following equations summarize the structure of an open economy: C= 1000 + .8 (Y - T)Consumption Function T = 150 + .25 YTax I

the following equations summarize the structure of an open economy:

C= 1000 + .8 (Y - T)Consumption Function

T = 150 + .25 YTax

I = 500 - 10 iInvestment equation

G = 2000Government Expenditures

NX = -500NetExport

(M/P)d = .2Y -20iDemand for Money

(M/p) s = 200Money Supply

An expansionaryfiscal policy of increasing the government expenditures by $50 result the crowding of investors by;

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