Multiplier, with Government and Foreign Sector

Question 1

In the Multiplier Model, with Government and Foreign Sector, what is the Consumption Function Formula?

Answer 1

C = C^ + MPC ( Y - tY + TR)

Question 2

In the Multiplier Model, with Government and Foreign Sector, what is the Aggregate Expenditure Function Formula?

Answer 2

AE = C^ + MPC ( Y - tY + TR ) + iI + G + ( X - MPim(Y) )

Question 3

In the Multiplier Model, with Government and Foreign Sector, what is the Keynesian Multiplier Formula?

Answer 3

Mult = 1 / 1 - MPC ( 1 - t ) + MPim

Question 4

In the Multiplier Model, with Government and Foreign Sector, what is the Equilibrium Value of Income Formula?

Answer 4

AE = Y 
Y = [ C^ + MPC(TR) + iI + G + X ] + [ MPC ( 1 - t ) - MPim ] ( Y )