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For questions #9, 10, 11, and 12 use the following equation. C = 20 + 0.2(Y T) 9) a) b) C) d) 10) a) b)

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For questions #9, 10, 11, and 12 use the following equation. C = 20 + 0.2(Y T) 9) a) b) C) d) 10) a) b) C) d) 1 1) a) b) e) d) 12) a) b) C) d) What is the marginal propensity to save for this economy? 2% 20% 60% 80% What is the tax multiplier for this economy? -0.25 0.25 -1.25 1.25 Ifthe government increases taxes by 20, then how much will consumption change by? -5 5 -25 25 To increase real GDP by 40 the government needs to change government spending by 48 40 32 20

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