A country's MPC has been estimated as 0.8; investment of 2000; Government spending 8000, autonomous consumption 10,000
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A country's MPC has been estimated as 0.8; investment of 2000; Government spending 8000, autonomous consumption 10,000 while net exports equal 2500. If tax is given as T = 750 +0.25Y, compute; i. The tax multiplier (6 marks) ii. National Income for this economy when tax decreases by 100 and interpret your findings
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