Saving function = S=- 500 + 0.25 Y, I = 400 - 1250 i Ms = 1200, Mt = 0.20 Y, Mp = 0.05 Y and Msp = 500 - 1300 i a) Calculate Y and i equilibrium b) If the government increase its expenditure by 100, what is the rate of national income growth and how many percent the effectiveness of this policy? c)Draw the graph completely
Saving function = S=- 500 + 0.25 Y, I = 400 - 1250 i Ms = 1200, Mt = 0.20 Y, Mp = 0.05 Y and Msp = 500 - 1300 i a) Calculate Y and i equilibrium b) If the government increase its expenditure by 100, what is the rate of national income growth and how many percent the effectiveness of this policy? c)Draw the graph completely
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 5.11P
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Saving function = S=- 500 + 0.25 Y, I = 400 - 1250 i
Ms = 1200, Mt = 0.20 Y, Mp = 0.05 Y and Msp = 500 - 1300 i
a) Calculate Y and i equilibrium
b) If the government increase its expenditure by 100, what is the rate of national income
growth and how many percent the effectiveness of this policy?
c)Draw the graph completely.
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