Fredonia has the following consumption function
Not what you're looking for? Search our solutions OR ask your own Custom question.
A. Find the equlibrium level of GDP
b. How much is saves? Is savings equal to investment?
c. Now suppose that an export-promotion drive succeeds in raising net exports to $100. Answer (a) and (b) under these new circumstances.
© BrainMass Inc. brainmass.com December 24, 2021, 4:44 pm ad1c9bdddfhttps://brainmass.com/economics/macroeconomics/fredonia-following-consumption-function-4870
Solution Summary
The equilibrium level of GDP is found. The equal investment savings are analyzed.
$2.49