Assume that in 2015, the following prevails in the Republic of Nurd: Government spending (G) = $0 Net taxes (T) = $0 Planned investment (I) = $30 Assume that households in Nurd consume 75 percent of their income; they save 25 percent of their income. Thus, the consumption function and saving function of N C = 0.75Y, andS = 0.25Yg, where disposable income Y, = Y-T Determine the equilibrium level of income. Equilibrium income = S(Enter your response as an integer.)

Assume that in 2015, the following prevails in the Republic of Nurd: Government spending (G) = $0 Net taxes (T) = $0 Planned investment (I) = $30 Assume that households in Nurd consume 75 percent of their income; they save 25 percent of their income. Thus, the consumption function and saving function of N C = 0.75Y, andS = 0.25Yg, where disposable income Y, = Y-T Determine the equilibrium level of income. Equilibrium income = S(Enter your response as an integer.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that in 2015, the following prevails in the Republic of Nurd: Government spending (G) $0 Net taxes (T) = $0 Planned investment (I) = $30 Assume that households in Nurd consume 75 percent of their income; they save 25 percent of their income. Thus, the consumption function and saving function of Nurd are: C = 0.75Y, and S 0.25Yg, where disposable income Y. = Y-T ares Determine the equilibrium level of income. Equilibrium income $ (Enter your response as an integer.) Enter your answer in the answer box. lenovo V560
Assume taxes are zero and an economy has a consumption function of C = 0.80 (Yd) + $879.06. How much savings take place if disposable income is equal to 3,258.02? Round your answer to two digits after the decimal and include a negative sign if you find negative savings which is borrowing.
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