Unformatted text preview: autonomous investment is $10, and autonomous exports are $25. Also, the marginal propensity to consume is 95%, and the marginal propensity to import is 5%. (a) Find the equilibrium income. (b) What new marginal propensity to spend will decrease the equilibrium income by $100? QUESTION 3 Using the equilibrium relationship NS = NAF, derive the equilibrium relationship LEAKAGES = INJECTIONS, and also AE = Y. ECON105 week 3 questions Eldar Sehic SFU 2010-1...
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- Spring '10
- Macroeconomics, marginal propensity, equilibrium income