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Business, 30.03.2021 01:00 97seouls

Given the national income identity: Y = C + I + G + (X – M), where Y is national income, C is private consumption, I is private investment, G is government spending, X is export, and M is import. Further assume that: C = C0 + bYd , where Yd is disposable income and b is the marginal propensity to consumer, 0 < b < 1; M = mYd , where m is the marginal propensity to import, 0 < m < 1; Yd = (1-t)Y, where t is the tax rate, 0 < t < 1; and I = I0 , G = G0, and X = X0 , all assumed fixed. Find the equilibrium level of national income.

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Given the national income identity: Y = C + I + G + (X – M), where Y is national income, C is privat...
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