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Interest rate in the goods-market equilibrium

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Reference no: EM132519802

Consider the following numerical model: C = 700 + 0.8YD I = 500-2000i+0.1Y

G = 400

T = 500

If G increases from 400 to 600, how much income (Y) changes for any given level of the interest rate in the goods-market equilibrium?

Reference no: EM132519802

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