F07Monster Problem - ECONOMICS 304L SPRING 2008 REVIEW...

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ECONOMICS 304L SPRING 2008 AND IMPORTS TO THE MODEL (MONSTER PROBLEM) 1. You are given the following information about the economy of MACROVILLE. Y Yd C I G EX IM 0 0 300 200 300 500 0 500 375 600 200 300 500 125 1000 750 900 200 300 500 250 1500 1125 1200 200 300 500 375 2000 1500 1500 200 300 500 500 2500 1875 1800 200 300 500 625 3000 2250 2100 200 300 500 750 a. What is the marginal propensity to consume in MACROVILLE? b. Write the equation for the Consumption function. c. Write the equation for the Saving function. d. The only tax in MACROVILLE is an income tax. What is the income tax rate? e. Write the equation for the Tax function.
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f. How do imports change with income (Y) in MACROVILLE? What is the marginal propensity to import in MACROVILLE? (See pp. 352 – 354). g. Suppose that imports are a function of Y (not Yd). Write the equation for the Import function. h.
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This note was uploaded on 11/13/2011 for the course ECONOMICS 304K taught by Professor Ledyard during the Spring '08 term at University of Texas.

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F07Monster Problem - ECONOMICS 304L SPRING 2008 REVIEW...

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