133. Assume that the sum that individuals devour is equivalent to 80% of their extra cash of the former year, and au-tonomous utilization is $200 billion. Net venture approaches the expansion to the capital supply of the former enough said. The capital stock at whatever year is consistently equivalent to 2.5 times the level of that very year's utilization. What is the balance pay in the economy? How might the economy act in case it is faced by an abrupt drop in total pay of $50 billion?

133. Assume that the sum that individuals devour is equivalent to 80% of their extra cash of the former year, and au-tonomous utilization is $200 billion. Net venture approaches the expansion to the capital supply of the former enough said. The capital stock at whatever year is consistently equivalent to 2.5 times the level of that very year's utilization. What is the balance pay in the economy? How might the economy act in case it is faced by an abrupt drop in total pay of $50 billion?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 29P: The prime interest rate is the rate that banks charge their best customers. Based on the nominal...

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