Assume the following for the economy of a country:

	Consumption function: C = 100+ 0.25Y
	Investment: I = 50
	Export: X = 20
a)	Import: M = 10+0.05Y Solve for the equilibrium income.

b)What are the levels of import, consumption and saving atequilibrium?

c)Calculate the leakages and injections oftheeconomy.

d)Derive thespendingmultiplier.

e)Suppose marginal propensity to import increases by 0.05, what will happen to thespendingmultiplier?