Consider an economy with the following characteristics:

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Consider an economy with the following characteristics:
  • Consider an economy with the following characteristics:

  • Answers • 2 pages • 2020
  • Consider an economy with the following characteristics: Consumption function: C = 40 0.9YD; Planned investment: I = 40; Government expenditure: G = 60; The tax function: T = 0.2Y; Exports of the country: X = 14 The import function: M = 10 0.02Y. Assume there are no transfer payments and no autonomous taxes. All variables are in billions of dollars. C is consumption expenditure; YD is disposable income; Y is real GDP; G is government purchases of goods and services; T is taxes; ...
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