What is the aggregate spending equation if the saving function is S = -1000 + 0.25Y and autonomous investment spending is 100?
Aggregate spending will be given by:
As=−1000−900+0.25YA_s= -1000-900 +0.25YAs=−1000−900+0.25Y
As=−1900+0.25YA_s=-1900+0.25YAs=−1900+0.25Y
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