Consider a closed economy wherein
C = 0.8 Yd , t = 0.25 , I = 900 – 50i , G = 800, L = 0.25 Y – 62.5i , M/P = 500
Where in Yd = Disposable Income, t is the tax rate, i is the interest rate, G is the government spending. Calculate the Fiscal Policy Multiplier for the above question
For the above question calculate the Monetary Policy Multiplier
Match Column I and Column II and choose the correct match from the given choice