a) The structural model of an open economy is given as follows: Y=C+I+G+X-M Consumption function C = a+ BYd Tax function T= to+tY Government spending(G) 300 Planned investment (1) 200 Net exports (X-M) 50 Autonomous taxes (to) 250 Income tax rate (t1) 0.1 Marginal propensity to consume( MPC) 0.5 1 . If Consumption (C) is 600 when income (Y) is equal to 1500. Solve for autonomous consumption. (2 marks ii. Using the consumption model in part i and determine the equilibrium level of income? (3 marks 111. Determine the saving function and show that MPC + MPS = 1 (2 marks IV. Derive the government and tax multipliers? (4 marks)