Question: Suppose that the behavioural equations and identities for an open economy is given as follows: C=85+0.75Yd, T=100, I: 300, G = 205. X: 60, M:

Suppose that the behavioural equations and identities for an open economy is given as follows: C=85+0.75Yd, T=100, I: 300, G = 205. X: 60, M: 10+0.2Y Find out the equilibrium level of National Income. How much does the level of investment increase as a result of the increase in income by 145 crores. Calculate K (Investment multiplier). What ifthe net export increases by 40 crores. Calculate the Foreign trade multiplier. Give your interpretation on the basis of the results derived

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