a) Based on the information given on a hypothetical economy, answer the following questions. Saving function ( S) = -150 + 0.25Yd Investment (I) = 100 Government Expenditure (G) = 200 Taxes (T) = 100 iv) Find the value of investment multiplier v) What is value of autonomous consumption vi) Sketch the diagram to show your answer in (b)

a) Based on the information given on a hypothetical economy, answer the following questions. Saving function ( S) = -150 + 0.25Yd Investment (I) = 100 Government Expenditure (G) = 200 Taxes (T) = 100 iv) Find the value of investment multiplier v) What is value of autonomous consumption vi) Sketch the diagram to show your answer in (b)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 7E

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