In an economy, autonomous consumption expenditure is $50 billion, investment is $200 billion, and government expenditure is $250 billion. The marginal propensity to consume is 0.7 and net taxes are $250 billion. Export are $500 bilion and imports are $450 billion. Assume that net taxes and imports are autonomous and the price level is fixed.

A) what is the Consumption Function ?

B) What is the equation of the Aggregate expenditure curve?

C) Calculate equilibrium expenditure?

D) Calculate the multiplier.

E) If investment decreases to $150 billion, what is the change in equilibrium expenditure ?