Re: JNU- 2010 Doubt

Posted by Homer Simpson on May 04, 2014; 5:29am
URL: http://discussion-forum.276.s1.nabble.com/JNU-2010-Doubt-tp7585489p7588471.html

Yes, thats the multiplier formula with imports. it cant be b - usually we dont put income taxes on imports. As for X,Y,Z questions, refer to chapter on logic. it will suffice.

for question 60, put TR = 0.10Y so your C function will be 500 + c(Y + TR - Taxes) and solve the normal way. then compare with the investment multiplier u got for the case when TR = 750.

Anjali, i will confirm the sunk cost treatment and let u know. a bit confused about it!