graphinginvestment

graphinginvestment - Simplifying Assumption C C+I...

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Graphing Investment
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45 $1000 $1000 $6000 ? $6000
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C C+I This Distance Equals Gross Gross Investment Investment
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Disposable income ($) 45û C 1,000 1,000 2,000 3,000 2,000 3,000 Disposable income ($) 45û C C + I 1,000 1,000 2,000 3,000 2,000 3,000 Graphing the C + I Line 6-42 To keep things simple so we can read the graph we’re going to assume the level of investment stays the same for all levels of income
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Simplifying Assumption C C+I C line and the C+I line are parallel
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Unformatted text preview: Simplifying Assumption C C+I Disposable income ($) 45 C 1,000 1,000 2,000 3,000 2,000 3,000 Disposable income ($) 45 C C + I 1,000 1,000 2,000 3,000 2,000 3,000 Graphing the C + I Line 6-43 How much is I when disposable income is 1000, 2000, and 3,000? The C line and the C+I line are parallel. Therefore I is about 480 at every level of disposable income. 480...
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This note was uploaded on 01/13/2012 for the course ECON 101 taught by Professor Smith during the Fall '09 term at Harvard.

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graphinginvestment - Simplifying Assumption C C+I...

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