Question: C = $100 + 0.8 Yd, I o = $100, G o = $100, t = 10% a.Equilibrium national income, Ye = _____ simple multiplier,

C = $100 + 0.8 Yd, Io = $100, Go = $100, t = 10%

a.Equilibrium national income, Ye = _____ simple multiplier, k= _____

Show all of your work below before starting the next question.

b.How was the value of the simple multiplier affected by a rise in government spending from Go = 0 to Go = $100?

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