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Thank you for your anwser The following table reports data on consumption and pretax income for Utopia. The marginal tax rate in Utopia is 10%

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The following table reports data on consumption and pretax income for Utopia. The marginal tax rate in Utopia is 10% (i.e.t : 0.1). Consumptlon {S hill) Prue-tau Income [5 bill} 65 100 110 200 245 500 Calculate the marginal propensity to consume out of disposable income in Utopia. 0.55 0.45 0.50 0.55 0.51 The following table illustrates a few rounds of the multiplier process for a 2 sector economy for an initial increase in exogenous planned investment of 50. Rounds 1 2 3 4.......... APAE 50 35 #5 17.15 ....... AY 50 35 24.5 17.15...... What is the approximate value of the multiplier in this economy? 3.0 0.7" 3.3 1.4 2.4 FAB =L+IV+AM C = 20+0.9Y Ip=X=50 M = 0.1Y What is the value of exogenous (or autonomous) expenditure? 120 100 170 150 P10

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