Assume an economy where:

PAE$=C+I^P+G$

$C=C_0+C(Y-T)$

$I=I_0$

$=G_0$

$T=T_0+tY$

Assume that the marginal propensity to consume is $0\mathrm{.}75$ and the marginal tax rate is $0\mathrm{.}2.$ The balanced budget multiplier for this economy is:

a$.60\mathrm{.}5\%$

b$.62\mathrm{.}5\%$

c$.65\%$

d$.64\mathrm{.}5\%$

e$.69\%$

f$.61\%$