Ec301 Intermediate Macroeconomics Homework Week 2 Krista Reifschneider Chapter

Chapter 3. Problem 2
 2. Consider an economy is which taxes, planned investment, government spending on goods and services, and net exports are autonomous, but consumption and planned investment change as the interest rate changes. You are given the following information concerning autonomous consumption, the marginal propensity to consume, planned investment, government purchases of goods and services, and net exports: T = 1,800 NX = -200 (a)