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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
The equilibrium interest rate and GDP are;
Group of answer choices
12.2% and 2750
15.2% and 2250
7.5% and 1467
13.6% and 2360
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