Essay
Assume that consumption is represented by the following: C = 400 + 0.5Y. Also assume that investment (I) equals 100.
(a) Given the information, calculate the equilibrium level of income.
(b) Given the information, calculate the level of consumption and saving that occurs at the equilibrium level of income.
(c) What is the marginal propensity to save?
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(a) Y = 1,000
(b) C ...View Answer
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(b) C ...
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