Ca-Consumption after tax Sa - Savings after tax Remember: Tax is a constant value of $25

GDP $115 $135 $155 $175 $195 Taxes 25 25 25 25 25 GDP tu sable 90 110 130 150 170 Ca 77 93 109 125 141 Sa 13 17 21 25 29 xg 20 20 20 20 20 M 19 21 23 25 27 G 25 25 25 25 25 30 30 30 30 30 AE 133 147 161 175 189 Leakages 57 63 69 75 81 Injections 75 75 75 75 75 Ca Consumption after tax Sa Savings after tax Remember: Tax is a constant value of $25 What is the equilibrium level of income in this economy? [Do NOT use a dollar sign in your answer] If the federal government decided to reduce government spending by $15, what affect would this have on GDP? (Use the open economy multiplier.) If the federal government decided to increases taxes by $15, what affect would this have on GDP? (Use Open Economy multiplier.) Question 46 (3 points) 40 Listen Given the above information, will the Bank of Canada want to further EXPAND the Canadian economy or begin to CONTRACT the economy? [Fill in the blank With either EXPAND or CONTRACT] Assuming your previous answer is correct, we would expect that the Bank of Canada would achieve this result by BUYING or SELLING bonds? [fill in the blank with either BUYING or SELLING] As a result. will Chartered (Commercial) banks make MORE or FEWER loans? [Fill in the blank with either MORE or FEWER) This will cause the money supply of the nation to INCREASE or DECREASE? [fill in the blank either either INCREASE or DECREASE) As a result, will interest rates INCREASE or DECREASE? [Fill in the blank with either INCREASE or DECREASE]