Use the following information for the next questions.

· C = 100 + 0.75 Yd
· I = 450
· T = 180
· G = 300

1. The marginal propensity to consume (MPC = b) is:

2. The equilibrium level of income for this closed economy version of a
Keynesian model is.

3. The equilibrium level of consumption C is:

4. The private investment multiplier for this economy is:

5. How is the tax multiplier relative to the investment multiplier in
this closed economy?

6. In equilibrium, the government has a deficit/ surplus?

7. If Y = 800, how is actual investment related to planned investment?

8. Now, lets suppose the government decides to collect taxes given this
function,
T = 0.15 Y. How would you expect the new equilibrium level of income to
be?

9. The new investment multiplier with respect to the initial value is:

10. At the new equilibrium level of income the government has a fiscal
deficit, if any, of:

11. If we also open the economy, how would you expect the investment
multiplier to be, with respect to the last two (2) models?