**This question was originally posted in our Economics Forums and reposted here.**

I’m trying to work out the national economy of a fictitious country.

Government expenditure = 200

Investment Expenditure = 100

Household Expenditure is described by the consumption function C = 140 + 0.6(Y-T) where Y is national income and T is total taxes. T = tY and t the tax rate is 0.25

Exports = 120

Imports = 120

I’m struggling to work it out particularly the consumption function element.

Can anyone help!

Thanks

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