Hi, can you please help me with these multiple choice questions?

1. Suppose that consumption function is given by: C -100+0.8*(Y-7), where ) is income and 7 is net taxes. What is the tax multiplier implied by the Keynesian cross? a. -0.2 b. 4 c. 5 d. None of the above Answer: 2. Suppose that the government adopts a fiscal policy where it increases taxes and government spending by the same amount. If the MPC (marginal propensity to consume) in the economy is 0.6, what is the value of the multiplier of the fiscal policy stated above? a. 2.5 b. 1.5 c. 1 d. 0.6 Answer: 3. Suppose that the government increases taxes, ceteris paribus. In the IS-LM framework in which all prices are assumed to be fixed, this would lead to a -------- in income and a ------- in interest rate. a. rise; rise b. rise; fall c. fall; rise d. fall; fall Answer: 4. Suppose that all shocks to the economy arise from exogenous changes in the demand for money, causing the LM curve to shift to the left. Then, which of the following policies is (are) better for stabilizing income (output) at (or near) its initial level (before the shocks)? a. holding money supply constant b. adjusting money supply to hold interest rate constant c. Reducing the budget deficit through contractionary fiscal policy d. Both a. and b. Answer: Use the following information to answer questions 5. 6. 7 and & Consider a Solow model with population growth and technological progress. Let the per effective worker production function be y- f(k) =203, where y is output per effective worker and & is capital per effective worker. Suppose that the saving rate is s=0.4, the depreciation rate o = 0.1, the population growth rate "1 0.1 and the growth rate of efficiency of labor g=0.2. 5. The steady-state growth rate of total (aggregate) consumption in this model is a. 0.2 b. 0.3 C. Q d. 0.5 Answer: 6. The steady state growth rate of capital per worker in this model is a. 0.2 b. 0.3 C. U