Question: 2. The following data was extracted from the Kenyan Macro model Required: i) Calculate the Fiscal and Monetary policy multipliers and interpret them. ii) Demonstrate

2. The following data was extracted from the

2. The following data was extracted from the Kenyan Macro model Required: i) Calculate the Fiscal and Monetary policy multipliers and interpret them. ii) Demonstrate the conditions under which the two policies are effective C = 100+ 0.9Yd I = 200 - 500r L = 8Y - 20,000r G = 200 (Consumption function) (Investment function) (Nominal money demand) (Government purchases) (Tax rate) (Nominal money supply) (Price Level) T = 0.2 M = 8000 P = 10

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