The following equations describe an economy.

Y = C+I+G

C= 50 + 0.75(Y-T)

I = 150-10r

(M/P)power d = Y-50r

G = 250

T=200

M=3000

P=4

1. If the government cuts taxes by 30%, what is the new equilibrium interest rate and equilibrium income level? How much does income increase if the government reduces taxes by 1 unit? (That is, what is the tax multiplier =Y/T based on equilibrium income?) Calculate the tax multiplier if you only consider the IS curve and compare it with the tax multiplier in equilibrium.