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Answer to Question #84945 in Macroeconomics for Onuoha princess ezinne
Question #84945
in desired agreegate expenditure. in the consumption section. is wealth induced or autonomous. for instance say there is 300+0.5Y+0.05W. where does wealth go?
Expert's answer
As wealth is not constant, so it is induced.
If the consumption function is 300 + 0.5Y + 0.05W, then wealth is directly related with GDP.
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