Question: What can cause a decrease in the autonomous part of investment? Compute the necessary change in government spending in order for output to remain constant.

Compute the necessary change in government spending in order for output to

remain constant. Assume instead, that investment is given by I = a0

+ alY, where a0 > 0 is the autonomous part of investment

and 0 0 is the autonomous part of consumption, 0

What can cause a decrease in the autonomous part of investment? Compute the necessary change in government spending in order for output to remain constant. Assume instead, that investment is given by I = a0 + alY, where a0 > 0 is the autonomous part of investment and 0 0 is the autonomous part of consumption, 0

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