(Solved): I need an answer to question D pleas QUESTION 3 (30 MARKS) Consider a small closed economy that is d ...

QUESTION 3 (30 MARKS) Consider a small closed economy that is described by the following information: The full employment income \( =20000 ; \) Tax \( =10 ; \) Investment \( =1500 ; \) Autonomous Consumption \( =2400 \); Government spending \( =1200 \); and the Marginal Propensity to save \( =0.9 \) a) Calculate equilibrium national income. [10 marks] b) Derive the specific saving equation that corresponds to the consumption equation. [5 marks] c) At what level of income does savings equal zero? [5 marks) d) If government spending increases by 150 which is funded by equal increase in tax, by how much will equilibrium income change? [10 marks] TOTAL MARKS FOR ASSIGNMENT 1: 80 MARKS END OF ASSIGNMENT 1