Consider an economy with the following consumption function: C = 400 + 0.60YD, and investment function, I = 600. If the marginal propensity to consume increases by 0.05, what is the increase in equilibrium national income?
Consider an economy with the following consumption function: C = 400 + 0.60YD, and investment function, I = 600. If the marginal propensity to consume increases by 0.05, what is the increase in equilibrium national income?
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 15E
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Consider an economy with the following consumption function: C = 400 + 0.60YD, and investment function, I = 600. If the marginal propensity to consume increases by 0.05, what is the increase in equilibrium
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