Use the following information to answer the questions relating to the economy of

Islamabad:

C = 150 + 0.85Y

I = 350

Q.3.1.1 Use the expenditure method to calculate the country's equilibrium income

(Ye).

Q.3.1.2 Illustrate the answer in Q.3.1.1 graphically.

Q.3.1.3 Calculate the marginal propensity to save (MPS).

Q.3.1.4 Calculate the multiplier.

Q.3.1.5 Graphically demonstrate an increase in the national income should

Investment spending increase by 50.