If the foreign sector is added to the model and there is a positive marginal propensity...
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If the foreign sector is added to the model and there is a positive marginal propensity to import find the reduced form and the level of income determined. Given that: Y=C+I+G+ (X-Z) where C = Co + bY, Z = Zo+ 2Y and I = l = 45, G = Go =35, X = Xo = 40, Co = 35, Zo = 40, b = 0.9 and z = 0.1 (15) If the foreign sector is added to the model and there is a positive marginal propensity to import find the reduced form and the level of income determined. Given that: Y=C+I+G+ (X-Z) where C = Co + bY, Z = Zo+ 2Y and I = l = 45, G = Go =35, X = Xo = 40, Co = 35, Zo = 40, b = 0.9 and z = 0.1 (15)
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Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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