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Mathematics, 03.04.2021 15:20 kerstynsharp08

Assume the following data (in RM million) for an economy: Consumption function        : C = 800 + 0.75Yd
Income                : 1800
Investment            : 500
Net export            : 756             
Government expenditure    : 200
Tax                : 200

Calculate the following value:

(i)    Expenditure multiplier;                                                                    (3 marks)
    (ii)    Total consumption;                                                            (3 marks)
    (iii)    Equilibrium level of income.            ​

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