JNU entrance 2010 58-61 questions

Posted by aswathi on Apr 27, 2011; 6:28pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-entrance-2010-58-61-questions-tp6310634.html

Y= C+I
I=1000
C= f(Yd)
if Yd = o, then C=500
MPS= 30%
suppose govt. collects a direct tax revenue equal to 15% of Y & makes TR of 750 units of money per year

1. what is d value of investment multiplier in d economy
2. eq. level of Y.
3. If instead of 750 units of money, govt. makes annual TR of 10%, then d value of investment multiplier..