The TE curve in Exhibit 11(d) is upward-sloping because the consumption function is upward-sloping. Explain.

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Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

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Question Posted: Feb 12, 2016 07:21 AM

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How will a rise in government purchases change the TE curve in Exhibit 12?
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The TE curve in Exhibit 11(d) is upward-sloping because the consumption function is upward-sloping. Explain.

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Consumption investment and government are summed to create the TE c...View the full answer

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