480 + 0.5YD I = 110 T = 70 G = 250 a. Calculate the private savings, public savings, and  investment spending. b. Calculate the multiplier and explain how it affects equilibrium output. c. Suppose that the government decides to increase its spending from €250 billion to €300 billion. Find the equilibrium output, consumption, and disposable income. Why would the government decide to expand fiscal spending?

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