Business, 13.12.2021 21:10 emmi14

(economy class) Please help, I need "d", I don't know how to come up with a possible outcome...I already finished a, b, & c just need d. Please use the following scenario to answer the questions: A developed economy is experiencing an economic contraction. Fiscal interventionists determine the economy has a gap that is $500 billion less than what is needed to be at the natural rate. This economy has an mps of 20%. Show all work. (equations)

a) What is the economy's mpc? Why?
c=.80

b) Please find the Em and NTm for this economy.
Em =5 NTm=4

c) According to monetarists, the increased government borrowing drives up interest rates, resulting in an mps of 25%. What is the new mpc, Em, and NTm for this economy?
Em=4 NTm=3. C=.75

d) Describe the possible outcomes from such an event. Create idealized models to support your work.

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(economy class) Please help, I need "d", I don't know how to come up with a possible outcome...I alr...