1. Suppose that C = 40+0.9Yd; I = 50; G =10; X= 50; M= 10+0.1Y; T =10;...
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1. Suppose that C = 40+0.9Yd; I = 50; G =10; X= 50; M= 10+0.1Y; T =10; R=0 and Yd= Y-T+R - National income - Compare the investment multipliers and tax multipliers of closed and open economy.
2. We have marginal propensities of import and marginal propensities of saving in Laos as 0.2 and 0.5 and in America as 0.3 and 0.2, respectively.
- Please calculate those two countries' open economic multipliers.
- There are three rounds of trade between Laos and the US. Calculate the national income of Laos and the US for each round. If Laos initially exports 35 million to the United States.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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