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Suppose the Multiplier Model Is

question 24

Essay

Suppose the multiplier model is
C = C0 + cY
I = I0
M = M0
X = X0
Y = C + I + X - M
where C0 is autonomous consumption,c is the marginal propensity to expend,Y is income,C is consumption,I is investment,X is exports of goods from the United States and M is imports of goods into the U.S.
What is the formula for equilibrium national income (Ye)?


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