An economy has the following consumption, savings, investment, tax, exports and imports functions C 10 0 2Y, S 10 0 8Y, I 100 2r, T 50 0 3Y, E 1000 0 5Y, M 200 0 6Y Determine the marginal propensities with respect to each function and interpret your findings (10 marks) An economy has the following...

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An economy has the following consumption, savings, investment, tax, exports and imports functions; C=10+0.2Y, S =-10+0.8Y,...

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Macroeconomics Principles, Applications, and Tools

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An economy has the following consumption, savings, investment, tax, exports and imports functions; C=10+0.2Y, S =-10+0.8Y,...

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