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Home / Questions / Given the information in the table calculate the following: Assume Y N\$500m 085Y M 03Y I...

# Given the information in the table calculate the following: Assume Y N\$500m 085Y M 03Y I N\$900m G N\$850m X N\$1840m and t 021Y 31 Calculate the total-spending function and

Given the information in the table calculate the following: Assume Y = N\$500m + 0,85Y; M= 0,3Y; I = N\$900m; G = N\$850m; X = N\$1,840m and t = 0,21Y. 3.1 Calculate the total-spending function and equilibrium income. Illustrate this on a graph. [8 marks] 3.2 Indicate on the graph the effect of an N\$300 million increase in investment spending and comment on the magnitude of change in the equilibrium income relative to the change in investment spending. Calculate the new equilibrium income. [9 marks] 3.3 Assume the marginal tax changes to t = 0,35Y. How will this change influence the total

Apr 30 2020 View more View Less

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