An economy has expenditure functions as follows:

Consumption C = 74.5 + 0.75Yd- 2*r,where disposable income Yd= (1 - 1/3)Y - 10

Planned Investment Ip= 110 - 5*r

Government spending G = 43 - r

Net exports NX = 30 - 2*r

a.What is this economy's MPC?Its income tax rate?Its lump-sum (autonomous) taxes?

b.What's the multiplier in this economy?

c.State the planned expenditure function AE for this economy, given all the equations above.Theonly variables should be r and Y

d.State the equilibrium condition for short-run expenditure.Use that equilibrium condition to

derive the IS curve.That is, solve for output Y as a function of the real interest rate r.

e.Suppose r = 13.What is total spending on C, I, G, and NX?What is this economy's aggregateexpenditure?

f.Autonomous consumption in the setup is= 74.5.Suppose that rises by 25, to 99.5, all elseequal.What is the new short run level of output?