Question: In a two-sector economy the aggregate household saving function is given by S=-80+0.5Y and planned investment is 120. If autonomous saving by households increases

In a two-sector economy the aggregate household saving function is given by

In a two-sector economy the aggregate household saving function is given by S=-80+0.5Y and planned investment is 120. If autonomous saving by households increases by 20, what is the effect on household saving in equilibrium?

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