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An open economy is described by the following system of
Y=C+I+G+X-M.
C=100+0.75Yd.
T=50+0.5y.
I=200.
X=200.
M=50+0.25y.
G=150.
(a) Determine the equilibrium level of income/output.
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- Consider the changes in equilibrium that are presented in the following graph: The change from E0 to E2 is caused by.. Answer Choice Group Appreciation of the national currency Depreciation of the national currency Increase in taxes paid by companies in the country A decrease in the price of gasolineWhich one of the following is true for a Keynesian model in a closed economy without government Select one: a. Consumption equals investment b. Savings equals interest rate c. Consumption equals to saving d. Investment equals savingsFor the goods market of an open economy to be in equilibrium, the interest rate must be at 2% when GDP equals 120. We also know the following about consumption (C), investment (1), fiscal policy (taxes T and government expenditures G), imports (M) and exports (X) of the country: C = 20 + b*Y_{D} I = 44 T = 60 G = 22 M = 16 X = 32 where b is the marginal propensity to consume and Yo is net disposable income. What is the value of total consumption? Select one: a. 18 b. 20 C. 38 d. 120
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