Y=C+I+G

C=100+0.75(YT)

I=50050r

G=125

T=100

a. The marginal propensity to consume in this economy?

b. Suppose the central bank's policy is to adjust the money to maintain the interest rate at 4%, or r = 4, when the interest rate is 4% GDP is?

c. Assuming no change in monetary policy, (decrease/increase?) in government purchases by ($?) would restore GDP to the full employment level. "Assume no crowding out effect"

d. Assuming no change in fiscal policy, (increase/decrease?) int he interest rate by (%?) would restore t the ful employment level.