An economy is currently in equilibrium.The following figures refer to elements in the national income accounts.

$ Billions

Consumption (total)60

Investments5

Government expenditure 8

Imports10

Exports7

a.What is the current equilibrium level of national income?

b.What is the level of injections?

c.What is the level of withdrawals?

d.Assuming the tax revenues are $7 Billion, how much is the level of savings?

e.If national income now rose to $80 billion and as a result, the consumption is domestically produced goods rose to $58 billion, what is the mpc_d?

f.What is the value of the multiplier?

g.Given an initial level of national income of $80 billion, now assume that spending on exports rises by $4 billion, spending on investment rises by $1 billion, whilst government expenditure falls by $2 billion.By how much will national income change?