Re: jnu 2010

Posted by aditi5000 on May 17, 2012; 10:28am
URL: http://discussion-forum.276.s1.nabble.com/jnu-2010-tp7561215p7563548.html

Hi Sweta
y = 500 + .7 (.85 Y +750) +1000
   = 1500 + .595 Y +525
   = 2025 / 0.405 = 5000
Inv multplier = 1/  0.405  = option c
eqb level of incom - option d

If instead of 750 units of money, govt. makes annual TR of 10%, then d value of investment multiplier
inv multiplier = 1 / 0.335 = 2.98 option d
y = 500 + .7 (.85 Y +.10 y) +1000
   = 1500 + .665 y
y * = 1500 / 0.335
 Does this make sense according to you.. I am also very unsure...