Suppose that a model of t

Suppose that a model of t

Suppose that a model of the economy is given byY= C+I+G+X C=C = a+bYdYd= (1-t) YX=G ? mYWhere I=$900 billion, G = 1,200 billion and the constants? take the following values: a =220, b =0.9, t =0.3, g = 500, and m = 0.1 a)A) Show that the value of the GDP at the point of spending balance is $6000billion?B) What proportion of investment is private saving? Government saving, ?saving by the rest of the world?C) Now , suppose that I increases by $100 billion . By what proportion of the increase in investment do each of the three categories of saving increases?

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