ECONOMICS HOMEWORK

ECO ASSIGNMENT ;

In a Hypothetical economy,

C = 124 +.75 (DISPOSIBLE INCOME)

I = 60 – 9 r

G = 156

NETXPORTS = 38-.05Y

The government levies a 20% proportional tax, therefore

Taxes = .20Y

Also

Md = .05Y+22+ 120

R

Ms = 100+ 11 r

A) Determine the equilibrium value of income Y, and the interest rate , R .

B) Check that leakages equal injections