What is the consumption spending c at the equilibrium

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Reference no: EM13207238

Suppose that the economy is characterized by the following behavioral equations:
C=160 + 0.5(Y-T)
I = 150
G = 150
T = 100
1. What is the consumption spending C at the equilibrium?

2. The government is willing to consider an increase in public spending only if the multiplier is higher than 1.5. Base on your calculations will the government implement the increase in government spending?

Reference no: EM13207238

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