Question: please answer this question short answer is fine Question #2: 112 Marks! Use the below information to answer the following questions Stranglethorn has an open
please answer this question short answer is fine

Question #2: 112 Marks! Use the below information to answer the following questions Stranglethorn has an open economy with government. The economy of Slranglethom has lhe folowlng features: Autonomous desired consumption expenditures are $350. Marg'nal propensity to consume out of disposable income is 0.30. Net tax rate of national income Is 10%. Autonomous desired investment expenditures are $150. Autonomous government purchases are $250) Autonomous export expenditures are $50. Marg'nal propensity to import is 0.15. a] What is the desired autonomous aggregate expenditure in this economy? [1 Mark} b] What is the Marginal Propensity to spend? [1 Mark} c] What is the Aggregate Expenditure Function? {1 Mark] d] Provide two factors elected officials could change to increase Desired Aggregate Expenditure? [2 Marks) e) If The Canadian dollar were to appreciate in value, which factors above would be affected and would they increase or decrease? [4 marks] f] What is the Net Exports function for Stranglethorn? {1 Mark] g] If government were to lower taxation rate, what affect would this have on Marginal Propensity to Spend and what affect would it have on the Simple Multiplier? {2 Marks]
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