NATIONAL INCOME

Consider an economy in which the price level is equal to one and the goods and money markets are described by the following equations:                                                                                      
Money Supply    (Ms)  =100
Consumption     (c)     =500+0.2(Y-T)
Investment          (I)     =60+0.5Y-10i
Money Demand (Md) =Y+90-10i
Export                  (X)    =20
Imports               (M)    =40
Government Spending (G)=Taxes (T)=200

Use the above information to answer question 15 to 20

16. Calculate the equilibrium level of income *

1287.21265.41272.8

17. Calculate the equilibrium level of investment *

1, 113.61, 014.61, 167.3

18. Calculate the equilibrium level of consumption expenditure *

245.62285.44395.6

19. Calculate the equilibrium level of interest rate *

21.7%31.82%22.6%26.4%

20. Suppose government taxes increases to 400. Compute the fiscal policy multiplier *

26.4%30%22.6%27.5%