If C=400+(4/5)(Y-T), G=300, NX=-100, T=500, and Ip =1000, then at output, Y, equal to 8000, unintended investment, Iu, is equal to?

a. -1000
b. 200
c. 400
d. 1000
e. -200

I chose C

Question

If C=400+(4/5)(Y-T), G=300, NX=-100, T=500, and Ip =1000, then at output, Y, equal to 8000, unintended investment, Iu, is equal to?

a. -1000
b. 200
c. 400
d. 1000
e. -200

I chose C

myininaya · Answer

Change the subject.
Thanks kindly.

anonymous · Answer

oh sorry didn't see that you were a moderator. accidentally reported you. sorry

myininaya · Answer

It's okay.

myininaya · Answer

I don't understand your question.
Are you trying to find C given Y and T?
What is NX and Ip?

anonymous · Answer

net exports for nx and planned investment for Ip. Im trying to find unplanned/unintended investment investment

myininaya · Answer

Do you have the formula for lu that we need?

myininaya · Answer

I'm trying to look it up.

myininaya · Answer

I know the planed amount is equal to C+Ip+G+NX

anonymous · Answer

actual investment=planned investment + unintended investment

myininaya · Answer

so you did
for the the planned amount:
$$400+\frac{4}{5}(8000-500)+1000+300-100?$$

anonymous · Answer

i got 7600

myininaya · Answer

yep that is what I got too from that calculation
what are you assuming to be the actual investment, is that Y?

anonymous · Answer

yeah so it has to be 400. thanks i was just unsure i was right

myininaya · Answer

So if the formulas you gave me are correct, then yeah Y-that thing I wrote above is equal to 400.

myininaya · Answer

Good job.

anonymous · Answer

thanks mate