For this question, suppose that =1. Consider the following model of the goods market in an...

 

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For this question, suppose that =1. Consider the following model of the goods market in an open economy. C=10+0.5(Y-T) I=10 T =10 G=10 IM=0.25Y X=0.25Y*. The foreign GDP is assumed to be constant. Calculate the tax multiplier in this economy (-AY AT). If needed, round your answer to two decimal places (e.g., 1.106 1.11). a. 0.66 b. 1 c. 1.33 d. 2 e. 4 For this question, suppose that =1. Consider the following model of the goods market in an open economy. C=10+0.5(Y-T) I=10 T =10 G=10 IM=0.25Y X=0.25Y*. The foreign GDP is assumed to be constant. Calculate the tax multiplier in this economy (-AY AT). If needed, round your answer to two decimal places (e.g., 1.106 1.11). a. 0.66 b. 1 c. 1.33 d. 2 e. 4

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