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Suppose the economy includes only consumers and business (no government or inter

ID: 1192786 • Letter: S

Question

Suppose the economy includes only consumers and business (no government or interantional trade) and that consumer saving is the only source of leakage (so y=Yd) in this private sector economy, spending behavior is represented by C=$450+0.5Y and I=$300 a. use this info to complete the following table:

i can't figure out how to do the table, if anybody could help me and show me how i would really appreciate it.

income consumption + investment = desired spending 500 300 1000 300 1500 300 2000 300 2500 300

Explanation / Answer

income consumption + investment = desired spending 500 700 300 1000 1000 950 300 1250 1500 1200 300 1500 2000 1450 300 1750 2500 1700 300 2000

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