refer to the following table: Consumption expenditure (C)= 100+ 0.8 Yd Investment expenditure (1) = 120-500/ Government spending (G)-50 Money demanded for Asset purpose= 100-2000 i Money demanded for transaction purpose= 60+0.1 Y Money demanded for precautionary purpose 40 Where is the interest rate, Y is the real GDP; Yd is the disposable income Suppose G rises by 100 S because of increased expenditure on education. What is the new equilibrium Y? 4600 2444 1444.44 1131.148 2000 Taxes 0.1Y Current account-0 Demand deposits 60 Saving deposits 30 Currency in circulation-10 Banks reserves 20
refer to the following table: Consumption expenditure (C)= 100+ 0.8 Yd Investment expenditure (1) = 120-500/ Government spending (G)-50 Money demanded for Asset purpose= 100-2000 i Money demanded for transaction purpose= 60+0.1 Y Money demanded for precautionary purpose 40 Where is the interest rate, Y is the real GDP; Yd is the disposable income Suppose G rises by 100 S because of increased expenditure on education. What is the new equilibrium Y? 4600 2444 1444.44 1131.148 2000 Taxes 0.1Y Current account-0 Demand deposits 60 Saving deposits 30 Currency in circulation-10 Banks reserves 20
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 3.7P
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