Please solve this question:

Suppose the government raises its revenue by a net tax of25 percent on income, t = 0.25, the marginal propensity to consume out of disposable income is 0.8, the marginal propensity to import is 111, and the government has an outstanding public debt of 1 ,Dt'l. In addition, the autonomous expenditure in households, business and foreign sectors (C + | + X - IM) is 270 and government expenditure is 450. Note: Keep as much precision as possible during your calculations. Your nal answer should be accurate to at least two decimal places. a) What is the public debt ratio? Public debt ratio = I% b) Now, suppose the government increases its expenditures by EU 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 = I c) What is the debt ratio after the increase in Iovemment expenditure and equilibrium income? New public debt ratio = I%