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    Principles of Macroeconomics Study Set 11
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    Exam 8: Aggregate Expenditure and Equilibrium Output
  5. Question
    Assume the Saving Function for an Economy Is S =
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Assume the Saving Function for an Economy Is S =

Question 25

Question 25

Essay

Assume the saving function for an economy is S = - 200 + .2Y. Derive the consumption function from this information and show your work.

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Since Y = C + S , we can write...

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