CL3 ECO 3203 - Find a numerical value for: Consumption:...

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Classwork #3 Suppose that consumption is $800, investment is $100, and government spending is $100. The economy is closed so there are no net exports. Taxes are $50. All variables are measured in billions. Find a numerical value for: GDP: ____________ National saving: ____________ Private saving: ____________ Government saving: ____________ Suppose the marginal propensity to consume is 60% and the marginal propensity to save is 40%. Income is $2,000, taxes are $200, and government spending is $300.
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Unformatted text preview: Find a numerical value for: Consumption: _____________ Investment: _____________ Private saving: _____________ National saving: _____________ Government saving: _____________ Now suppose taxes increase by 20. Find new values for: Consumption: ____________ Investment: ____________ Private saving: ____________ National saving: ____________ Government saving: ____________...
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This note was uploaded on 11/08/2011 for the course ECO 3203 taught by Professor Yang during the Fall '10 term at University of Central Florida.

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