The following is information for the economy of Tandor, where taxes are wholly autonomous: C 60+ 0.75YD where YD= (Y - T) I = 120 a. The value of equilibrium income is $ b. At equilibrium, the amount of the budget (Click to select) is $ c. If government increased both its spending and taxes by $40, the new equilibrium income would be $ G = T = 340 XN = 105 - 0.15Y

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Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.