Ca = 25 + 0.75 (Y - T) Ig = 50 Xn = 10
G = 70
T = 30
(Advanced analysis) The accompanying equations are for a mixed open economy.The letters Y, Ca, Ig, Xn, G, and T stand for GDP, consumption, gross investment, net exports, government purchases, and net taxes, respectively.Figures are in billions of dollars.The multiplier for this economy is
A) 4.
B) 3.
C) 2.
D) 2.33.
Correct Answer:
Verified
Q74: GDP C S Ig $100 $100 $0
Q75: Q76: Q77: If a $20 billion increase in government Q78: Which of the following would increase GDP Q80: GDP C S Ig $100 $100 $0 Q81: If the MPC in an economy is Q82: Assume the current equilibrium level of income Q83: The multiplier effect demonstrates that Q84: If the MPC is 0.50 and the
A)equal increases in
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