Consider an economy described by the following: Autonomous consumption ( a ) = 100 Autonomous Investment = 100 Marginal propensity to consume = 0.75 What is the savings function for this economy?
Consider an economy described by the following: Autonomous consumption ( a ) = 100 Autonomous Investment = 100 Marginal propensity to consume = 0.75 What is the savings function for this economy?
Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 3TY
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Question
Consider an economy
described by the following:
Autonomous consumption ( a ) = 100
Autonomous Investment = 100
Marginal propensity to consume = 0.75
What is the savings function for this
economy?
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