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Given is the information of an economy In a closed economy, the national savings function for Country A is S=150+0.35Y and investment I RM275 million.

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Given is the information of an economy In a closed economy, the national savings function for Country A is S=150+0.35Y and investment I RM275 million. Complete the following schedule Ni a) Derive the consumption function. (6 marks) b) Calculate the equilibrium national income for Country A. (2 marks) c) If the government increase salaries for government servants by RM175 million, what is the new equilibrium income. (2 marks)

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