Dornbusch Fischer Macroeconomics 6th Edition Solutions (GENUINE)

Suppose the consumption function is given by C = 100 + 0.8Yd, where Yd is disposable income. If government spending is 200 and taxes are 150, what is the equilibrium level of output?

Suppose the investment function is given by I = 200 - 10r, where r is the interest rate. If the interest rate is 5%, what is the level of investment? Dornbusch Fischer Macroeconomics 6th Edition Solutions

To solve this problem, we simply substitute the given interest rate into the investment function: Suppose the consumption function is given by C = 100 + 0

Y = 1000