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An economy is in equilibrium. From the f...

An economy is in equilibrium. From the following data about an economy investment expenditure.
(i) Income=10000
(ii) Marginal propensity to consumption=0.9
(ii) Autonomous Consumption = 100

Text Solution

Verified by Experts

Y=C+I
`Y=bar(C)+bY+I`
`Y=bar(C)+bY+I`
`10000=100+9000+I`
I=10000-9100
I=900
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