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Q) SUPPOSE: Consumption function: C = 100+ 0.75Yd Investment: I = 200 Government spending: G = 200 Net taxes: T=-40+ 0.2Y Find: a) The equilibrium

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Q) SUPPOSE: Consumption function: C = 100+ 0.75Yd Investment: I = 200 Government spending: G = 200 Net taxes: T=-40+ 0.2Y Find: a) The equilibrium income (Y). b) The Multiplier. c) Find the tax multiplier. d) If Government spending increased by 100. Find the new equilibrium income (Y). e) If Government spending increased from 200 to 400. Find the new equilibrium income (Y)

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