I'm not sure if my calculations are correct...

ww-yicw VIM-ylwv .._._._._.4...ty aw1..yln:._..:_._..x I _ l x L9 Lab 4 (Question 2) ~ Lyryx Learning Inc - Google Chrome [I X i laeconi .lyryx.com/student-serv|ets/LabServlet?ccid =3626 Print Preferences Help Lab 4 (Question 2) Name: XINCHEN JIANG Date: 20200219 Question 2 [12 points] Suppose the government raises its revenue by a net tax of 25 percent on income, t = 025, the marginal propensity to consume out of disposable income is 0.8, the marginal propensity to import is 0.11, and the government has an outstanding public debt of 800. In addition, the autonomous expenditure in households, business and foreign sectors (C + | + X - IM) is 240 and government expenditure is 400. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. a) What is the public debt ratio? Public debt ratio = 63.75% b) Now, suppose the government increases its expenditures by 80 to provide additional funding for national defense. What is the size of the outstanding public debt after the increase in government expenditure, assuming the economy has reached its new equilibrium national income in one year? New public debt = 840.78 c) What is the debt ratio after the increase in government expenditure and equilibrium income? New public debt ratio = 59.56% Official Time: 10:01:32 SUBMIT AND MARK SAVE AND CLOSE