Assuming T = 0, for the following three consumption functions, i) identify the mpc and mps, iii) tax multiplier, and ii) calculate the expenditure multiplier: (be sure to give the formulae for the two multipliers) a. C = 100 + 0.75 Y^d. b. C = 50 + 0.9 Y^d . c. C = 200 + 0.8 Y^d

Assuming T = 0, for the following three consumption functions, i) identify the mpc and mps, iii) tax multiplier, and ii) calculate the expenditure multiplier: (be sure to give the formulae for the two multipliers) a. C = 100 + 0.75 Y^d. b. C = 50 + 0.9 Y^d . c. C = 200 + 0.8 Y^d

MACROECONOMICS FOR TODAY

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ISBN:9781337613057

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Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 7SQ

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a. C = 100 + 0.75 Y^d.

b. C = 50 + 0.9 Y^d .

c. C = 200 + 0.8 Y^d

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