Consider the following open economy (Home economy). The real exchange rate is fixed and equal to one. Saving, investmen

[answerhappygod]

Consider the following open economy (Home economy). The real
exchange rate is fixed and equal to one.

Saving, investment, government spending, taxes, imports and exports
are given by:
S = −80 + 0.18Y
I = I
G = G
T = T0 + t1Y
Q = q1Y
X = x1Y∗

where T0 is the level of autonomous taxes, q1 and x1 are ,
respectively the marginal propensity to import, and export reaction
to the foreign country’s income. An asterisk is used to designate
variables related to the foreign economy.

1. Assuming that t1 = 0.1, and T0 = 100, find the values for the
values of c0 and c1. (I cannot for the life of me figure out how to
get the integer values for both C0 and C1 please assist)

2. Assume Foreign economy has the same equations as Home
economy. Moreover, use the following values for the remaining
autonomous variables: I = 500, G = 500. Use q1 = 0.1 and x1 =
0.1

(a) Solve for the equilibrium values of income, Y, and Y ∗ in both
economies. (8 points)

(b) Find the tax multiplier for each economy

Please assist thank you