Question #246704

What is the aggregate spending equation if the saving function is S = -1000 + 0.25Y and autonomous investment spending is 100?


1
Expert's answer
2021-10-05T09:21:27-0400

Aggregate spending will be given by:

As=1000900+0.25YA_s= -1000-900 +0.25Y

As=1900+0.25YA_s=-1900+0.25Y


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