Using the given set of equations below; Y=C+I; C = Co + bYa; T = To+tY;...
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Using the given set of equations below; Y=C+I; C = Co + bYa; T = To+tY; Ya = Y-T Where I - Io =30; co = 85; b = 0.75; t = 0.2 and To = 20. Find; A. The reduced form [3 Marks] B. The numerical value of Ya, and [6 Marks] C. The effect on the multiplier if a proportional income tax (t) is incorporated into the model [6 Marks] Using the given set of equations below; Y=C+I; C = Co + bYa; T = To+tY; Ya = Y-T Where I - Io =30; co = 85; b = 0.75; t = 0.2 and To = 20. Find; A. The reduced form [3 Marks] B. The numerical value of Ya, and [6 Marks] C. The effect on the multiplier if a proportional income tax (t) is incorporated into the model [6 Marks]
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A The reduced form of the given equation are the end... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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