Question: Consumption function : C = 800 + 0.75Yd Income : 1800 Investment : 500 Net export : 756 Government expenditure : 200 Tax : 200

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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