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b) The following statistics relate to National Income accounting figures for country XYZ C= 200+0.8YdwhereYd = Disposable income I= 300 Yd= Y-TT = Taxation I=

b) The following statistics relate to National Income accounting figures for country XYZ

C= 200+0.8YdwhereYd = Disposable income

I= 300

Yd= Y-TT = Taxation

I= 200C = Consumption

T= 100I =Investment

Compute:

i) The change in income

ii) Disposable income after change in investment

iii) The investment multiplier caused by the change in investment and interpret it [6 Marks]

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