Suppose you have an open economy with Government sector imposing tax to finance its expenditures. This economy is described as follows: (in billion dollars)  C = 250 + 0.85YD      where tax rate is 10 percent. autonomous investment expenditures are 140 billion dollars,  autonomous government expenditures are 80 billion dollars,  autonomous transfer payments are 100 billion dollars, NX = 0 a)     Calculate the equilibrium level of income in this model.    b)     Calculate the multiplier.    c)     Calculate the tax revenues (TA).

Q: Consider an open economy described by the following equations: C = 400 + 0.90 (Y – T)…

A: An open economy implies that the economy exchanges goods and services with other countries.

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A: Given, C = 3 + 0.72Y, G = 11                 I = 4 X = M = 0

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A: Since you posted multiple questions, we will provide you with the answer to the first question only.…

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A:

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Q: Imagine this economy has a 10% tax on income. The following are exogenous (not directly affected by…

A: Given, C = 3 + 0.72Y, G = 11                 I = 4 X = M = 0

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A: please find the answer below.

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A: