Unformatted text preview: wealth. Assume the aggregate marginal propensity to consume is 0.75. By how much will income increase after the overall adjustment process is competed? (SHOW YOUR CALCULATION AND REPORT THE ANSWER BELOW) $20/(1-0.75)= __________$80_________ 3) Consider and economy in which: C=100, I=10, X=5, IM=8, G=5; TR=1, T=4 The symbols have the usual interpretation. How much of the 10 dollars of investments is financed through foreign savings? (SHOW YOUR CALCULATION AND REPORT THE ANSWER BELOW) KI=IM-X=8-5= ____3 ______...
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- Spring '08
- Economics, BONUS QUESTIONS TEST, aggregate marginal propensity