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Investment and government spending

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Reference no: EM131278015

Consider a closed economy with a fixed price level in which investment and government spending are assume to be autonomous and taxes are all lump-sum. Consumption and savings are both directly and linearly related to disposable income. You are given he following information

C=20+0.6Yd

I=10

G=20

T=20

Write down the equation relating consumption and savings to national income and plot these relationship on graph?

Reference no: EM131278015

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