Answer Happy

Question 6 2 pts Take the case of a closed economy (no external sector). Y is aggregate income, I is investment, G is government spending and C is aggregate consumption. Aggregate consumption is such that: C = co + CY Co is autonomous consumption, which is affected by factors such as confidence levels and expectations. Ci is marginal propensity to consume, affected by wealth/income levels (it decreases with wealth) and by access to consumption tools (it is higher when this access is limited). loans