Find out level of consumer spending and level of savings if

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1. Write down the consumption function given the above information.

2. Determine the level of consumer spending and the level of savings, if the national income is $4500. Please remember to show your work.

3. What is the level of consumer spending that the firms are expecting, if the national income is $4500. Please show your work. Hint: Y= C+Ii

4. Is the economy in equilibrium? Why or why not?

5. Solve for the equilibrium level of national income, using the formula Y= C+I.

Reference no: EM13392772

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