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Consider the following economy Ca = 1850 - 15 R; c= 0.60 ; Ta= 1,800; t = 0 ; Ip = 20 (100 - 1.2R

Consider the following economy

Ca = 1850 - 15 R; c= 0.60 ; Ta= 1,800; t = 0 ; Ip = 20 (100 - 1.2R ) ;

G = 2,000; X = 1,600 ; NX = -1,255. Assume nx = 0.

a) Compute the marginal propensity to save

b) Calculate the amount of imports for this country

c) Compute the multiplier

d) Derive the equation of the autonomous spending and compute its value for R = 4

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