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Answer the following questions: 1. Suppose consumption C = 50 + 0.80 (YD), Government Purchases G = 50, Export X = 20, inflation rate is

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Answer the following questions: 1. Suppose consumption C = 50 + 0.80 (YD), Government Purchases G = 50, Export X = 20, inflation rate is 2.5%. The net tax rate, t = 0.25. The marginal propensity to import, m = 0.2. What level of Investment is needed to achieve a target equilibrium income of 400? 2. Suppose GDP in a closed economy is equal to $100 million, Consumption is $50 million and the government's net tax rate is 10%. If we are told that the government has a budget deficit of $10 million, calculate government purchases

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