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Answer the following questions appropriately. Suppose we have the following information for an economy: Y=l, Ca =D.El', J =2D What is the marginal propensity to

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Answer the following questions appropriately.

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Suppose we have the following information for an economy: Y=l, Ca =D.El', J =2D What is the marginal propensity to eousume domestically produced goods? What is the marginal propensity to withdraw (in savings, taxes and imports)? What is the value of the multiplier? What is the value of the multiplier if the marginal propensity to withdraw increases to 0.4? The higher the marginal propensity to withdraw {or the the marginal propensity to consume domestically produced goods) the the multiplier. Mortality of a group of lives is assumed to follow Gompertz' law. Calculate /, for a 30-year old and a 70-year old, given that /, is 0.003 for a 50 year old and 0.01 for a 60-year old. [4]

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