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If an economy has the following data: (25 marks) Induced consumption = 0.5Y Autonomous Consumption = 500 MY = 0.25Y Mr = - 37.5 r
If an economy has the following data: (25 marks) Induced consumption = 0.5Y Autonomous Consumption = 500 MY = 0.25Y Mr = - 37.5 r YD = 0.8Y G = 700 I = 800 - 25 r MS = 500 Based on the above data, answer the following questions: (Note: Answer all points in each question, any missing point or calculation will deduct from your marks) 1. What is the tax rate and MPC (from disposable income)
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