Consumers spend an average of 75% of their income (thus they save 25% of their income).

Autonomous consumption is at $18,000.

The country has a variable tax system, and the current variable tax rate () is 18%.

The federal government currently has expenditures of $18,000

At the current time, the level of investment is at $30,000

At the present time, there is a trade deficit of $15,000

(Note that the country does not have any fixed taxes - it only has variable taxes.)

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If the fiscal policy authorities wish to correct the economy to take it to full employment, what is the approximate new variable tax rate that they should implement?

		The new variable tax rate should be approximately 5.75%.
		The new variable tax rate should be approximately 11.21%.
		The new variable tax rate should be approximately 34.91%.
		The new variable tax rate should be approximately 22.21%.