C=100+0.88Y; I=50; G=40; X=50; M=0.09Y and t=0.35Y
1.Determine the equation for TE and illustrate...

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C=100+0.88Y; I=50; G=40; X=50; M=0.09Y and t=0.35Y
1.Determine the equation for TE and illustrate this grahically
2.Use the multiplier to indicate how a decrease in investment of R50 will affect the GDP. Show all caluclations. Illustrate this on a graph

David · Accepted Answer

C=100+0.88Y; I=50; G=40; X=50; M=0.09Y and t=0.35Y  
1.Determine the equation for TE and illustrate this grahically  
Answer: 
M=0.09Y, implies m = 0.09 
T=0.35Y, implies t = 0.35
Equation for TE: 
TE = C+I+G+X-M = 100+0.88*(Y-0.35Y)+50+40+50-0.09Y or 
TE = 240+0.88Y-0.308Y-0.

C=100+0.88Y; I=50; G=40; X=50; M=0.09Y and t=0.35Y 1.Determine the equation for TE and illustrate this grahically 2.Use the multiplier to indicate how a decrease in investment of R50 will affect the...

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