The values below are in billions of dollarsc 800i

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Reference no: EM13378733

The values below are in billions of dollars.

C = $800

I= $100

G=$200

IM= $150

Ex=$100

a. What is output?

b. If taxes (T) are $100 billion, what is private savings?

c. Now assume that imports increase from $150 billion to $200 billion. Show three different ways that this can change the expanded savings/investment identity.

d. If exports increased from $100 billion to $200 billion how would the savings/investment identity change? (you probably need to think about this in two steps).

Reference no: EM13378733

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