Ig = 80 S = −80 + 0.4Y

question 20

Multiple Choice

Ig = 80 S = −80 + 0.4Y
(Advanced analysis) The equations refer to a private closed economy, where Ig is gross investment, S
Is saving, and Y is gross domestic product (GDP) . In equilibrium, saving will be

• A) $40.
• B) $120.
• C) $60.
• D) $80.

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