ime left 1:1629wing questions:1. Suppose consumption C = 50 + 0.80 (YD), Government Purchases G = 50, Export X=20, inflation rate is 2.5%. The net tax rate, t = 0.25. The marginal propernsity toimport, m = 0.2. What level of Investment is needed to achieve a target equilibriumincome of 400?2. Suppose GDP in a closed economy is equal to $100 million, Consumption is $50 millionand the government's net tax rate is 10%. If we are told that the government has abudget deficit of $10 million, calculate government purchases

As there are multiple question in the question asked, we are answering the first question only.…

1. Suppose consumption C = 50 + 0.80 (YD), Government Purchases G 50, Export X= 20, inflation rate is 2.5%. The net tax rate, t = import, m = 0.2. What level of Investment is needed to achieve a target equilibrium %3D 0.25. The marginal propensity to income of 400? 2. Suppose GDP in a closed economy is equal to $100 million, Consumption is $50 million and the government's net tax rate is 10%. If we are told that the government has a budget deficit of $10 million, calculate government purchases

1. Suppose consumption C = 50 + 0.80 (YD), Government Purchases G 50, Export X= 20, inflation rate is 2.5%. The net tax rate, t = import, m = 0.2. What level of Investment is needed to achieve a target equilibrium %3D 0.25. The marginal propensity to income of 400? 2. Suppose GDP in a closed economy is equal to $100 million, Consumption is $50 million and the government's net tax rate is 10%. If we are told that the government has a budget deficit of $10 million, calculate government purchases

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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