(Answered) Suppose the government raises its revenue by a net tax of

Management Studies

Suppose the government raises its revenue by a net tax of 25 percent on income, t=0.25, the marginal propensity to consume out of disposable income is 0.7, and the government has an outstanding public debt of 900. The autonomous expenditure is (C0+I0) is 600 and government expenditure is 400. What is the debt to GDP ratio?

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