Example 7.1
Y=C+I+G
Consumption: C = 40 + .8Y
Investment I = 40
Exports X = 20
Imports Z = 30
-Refer to Example 7.1. The equilibrium level of Y is:
A) $200.
B) $245.
C) $320.
D) $350.
Correct Answer:
Verified
Q83: The marginal propensity to spend on domestic
Q84: Other things equal, a decrease in an
Q85: Q86: Q87: If exports decrease from positive values to Q89: Example 7.2 Q90: Example 7.2 Q91: Example 7.2 Q92: Example 7.2 Q93: In an open economy with constant prices,
Y=C+I+G+X-Z
Consumption C = 25 + 0.8(Y
Y=C+I+G+X-Z
Consumption C = 25 + 0.8(Y
Y=C+I+G+X-Z
Consumption C = 25 + 0.8(Y
Y=C+I+G+X-Z
Consumption C = 25 + 0.8(Y
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