Question

Assume the following information for the economy: C = c0 + c1Yd, where Yd = (1-t)Y                           ...

Assume the following information for the economy:

C = c0 + c1Yd, where Yd = (1-t)Y                            C = 200 + 0.75(1-.2)Y

I = I                                                                 I = 700

G = G                                                              G = 800

X = X                                                               X = 400

M = mY                                                          M = 0.1Y

Find Y = E using full E equation method and find savings

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Savings = 680




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