Given the following variables in the open economy aggregateexpenditure model aut

Given the following variables in the open economy aggregateexpenditure model autonomous consumption (C0) = 200 autonomousinvestment (I0) =200 government spending (G0) = 100 exportspending (X0) = 100 autonomous import spending (M0) = 100 taxes(TP) = 0 marginal propensity to consume (c1) = 0.8 marginalpropensity to invest (i1) = 0.1 and marginal propensity to import(m1) = 0.15: a. Calculate the equilibrium level of income for theopen economy aggregate expenditure model. b. If there is anincrease in autonomous import expenditure from 100 to 200 resultingfrom an increase in the currency exchange rate calculate the newequilibrium level of income and the value of the multiplier. c.Compared with the original equilibrium in part a if the governmentdecides to impose taxes (Tp) of 100 calculate the new equilibriumlevel of income. d. Hint: Remember that consumption has anautonomous component and is a function of disposable income Ydwhere Yd = Y Tp.