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Suppose That the Following Equations Describe the Relationship Between Shares

Question 121

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Suppose that the following equations describe the relationship between shares of spending in GDP (Y) and the interest rate (R), measured in decimal fractions (that is, R = .05 means that the interest rate is 5 percent). Suppose that the following equations describe the relationship between shares of spending in GDP (Y) and the interest rate (R), measured in decimal fractions (that is, R = .05 means that the interest rate is 5 percent). (A)Use algebra to determine the value of the interest rate and the share of spending in GDP. (B)Do the calculation again for a government share of 15 percent rather than 20 percent. (A)Use algebra to determine the value of the interest rate and the share of spending in GDP.
(B)Do the calculation again for a government share of 15 percent rather than 20 percent.

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