Problem
1. The structural model of an economy is given as below
C=400+0.8Yd Consumption function
I=350 Investment
G=450 Government expenditure
T=200 Tax
i) Derive the savings function.
ii) Derive the government expenditure and tax multiplier.
iii) Compute equilibrium income and consumption.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.