Why
is the answer -$100?Homework Answers
where A bar is equal to
autonomous consumption and planned investment spending.
Now change in Y is 3000- 8000 = -5000
1/1-c = 1/1-0.8 = 1/ 0.2 = 5
Change in Y/ change in A bar = 5
-5000/Change in A bar = 5
Change in A bar = -5000/5
= -1000
It is -100 because if it is -100, new autonomous spending ( A bar) will be 500 + 100
Change in Autonomous spending = 600-700
= -100
Add Answer to:
Why
is the answer -$100?
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is ¥400 million, lump-sum taxes (taxes that do not depend on real
income) are ¥100 million, investment spending is ¥300 million,
Japanese government spending is ¥100, and real net exports are ¥0,
The Japanese Marginal Propensity to Consume is 0.60. a. Solve for
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