# Consider a close economy with the following consumption and tax function C = C 0 + bY D T = T 0 + tY

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Consider a close economy with the following consumption and tax function C = C 0 + bY D T = T 0 + tY 1 answer below » Consider a close economy with the following consumption and tax function C = C 0 + bY D T = T 0 + tY Identify the endogenous and exogenous variables and the parameters (b) Assume I 0 = 60 , G 0 = 50 , C 0 = 55 , T 0 = 10 , b = 0 . 95 , and t = 0 . 15 Find the equilibrium national income, consumption, and tax What is the MPC View complete question » Consider a close economy with the following consumption and tax function C = C 0 + bY D T = T 0 + tY Identify the endogenous and exogenous variables and the parameters (b) Assume I 0 = 60 , G 0 = 50 , C 0 = 55 , T 0 = 10 , b = 0 . 95 , and t = 0 . 15 Find the equilibrium national income, consumption, and tax What is the MPC ? What is the value of multiplier? Is government budget in this economy balanced? If not, what is the amount of deficit or surplus? View less » Aug 20 2015 02:14 PM