Assume that the four-sector model is at play. C+I+G. All expenditures are autonomous. Given: C- 700 + .80 (1- t)Y -0.25 1-210 -75i G= 1000 TR=100 L-0.20Y- 40i M/P = 800 Required: Assuming that the fourth sector is included with an autonomous NX of 250, what happens to equilibrium income and interest rate?

Assume that the four-sector model is at play. C+I+G. All expenditures are autonomous. Given: C- 700 + .80 (1- t)Y -0.25 1-210 -75i G= 1000 TR=100 L-0.20Y- 40i M/P = 800 Required: Assuming that the fourth sector is included with an autonomous NX of 250, what happens to equilibrium income and interest rate?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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