Starting from the given and figure of Problem 2, and assuming that autonomous investment expenditures increase from

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Starting from the given and figure of Problem 2, and assuming that autonomous investment expenditures increase from I = 100 to I′ = 200:
(a) Draw a figure in terms of desired saving and investment showing the new equilibrium level of national income.
(b) Determine the value of the multiplier.
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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