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Part 1: Multiple choice questions:Questions 1-8 are worth 3 points each. Questions 9-12 are worth 4 points each.Question 13 / 3 ptsConsider the following modeli) C = 1650 + mpc (Y - tY)ii) I = 800iii) G = 500iv) X - M = 500 - mpi (Y)where:Question 23 / 3 ptsWe know that the formula for the (government) spending multiplier is 1/(1-[mpc(1-t) - mpi]). The value of the government spending multiplier in this problem is: Round to 2 decimal places.Question 33 / 3 ptsWhen we discussed the multiplier we discussed the impact effect. For example, suppose that G increases by 100 to 600 and we assume, as we
Question 43 / 3 ptsGiven that mpi=.2, we know that .2 of every dollar increase in gross income is a leakage due to imports. Since the increase in income is $100, we know the leakage due to imports is: