Homework Answers
Answer
Equilibrium is at
Y=C+I+G+NX
NX=X-IM=0
Y=20+0.5*(Y-160)+100+200
Y=320+0.5Y-80
0.5Y=240
Y=$480
Private saving =Y-T-C
=480-(20+0.5*(480-160))-160
=140
the private saving is $140
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