Assume a closed economy setup. The country's consumption function is C-200 +0.75YD, where YD is disposable...
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Assume a closed economy setup. The country's consumption function is C-200 +0.75YD, where YD is disposable income, and C is consumption, and that planned investment is $75. If real GDP is $1,100: a. unplanned investment equals zero. b. planned investment equals zero. c. the aggregate spending line shifts up. d. the marginal propensity to consume decreases. Assume a closed economy setup. The country's consumption function is C-200 +0.75YD, where YD is disposable income, and C is consumption, and that planned investment is $75. If real GDP is $1,100: a. unplanned investment equals zero. b. planned investment equals zero. c. the aggregate spending line shifts up. d. the marginal propensity to consume decreases.
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International Management Managing Across Borders and Cultures Text and Cases
ISBN: 978-0134376042
9th edition
Authors: Helen Deresky
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