Question:
The following data of an economy is given:
Consumption function C = 300 +0.8(1-t)Y;
Investment Function I = 900-50i;
Government expenditure G = 800;
Marginal tax rate t = 0.25
The IS equation corresponding to the above is:
The following data of an economy is given:
Consumption function C = 300 +0.8(1-t)Y;
Investment Function I = 900-50i;
Government expenditure G = 800;
Marginal tax rate t = 0.25
The IS equation corresponding to the above is:
Consumption function C = 300 +0.8(1-t)Y;
Investment Function I = 900-50i;
Government expenditure G = 800;
Marginal tax rate t = 0.25
The IS equation corresponding to the above is:
Updated On: Mar 12, 2024
- Y=5000+ 125i
- Y=5000-125i
- Y=4250-125i
- Y=4250+125i
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The Correct Option is B
Solution and Explanation
The correct option is(B): Y=5000-125i
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