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Investment Projects Project A Project B Project C Expected Profit Rate 10 % 6 % 4 % The table above shows the expected profits associated with four different investment projects for Company Millennium

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1. Investment Projects Project A Project B Project C Expected Profit Rate 10 % 6 % 4 % The table above shows the expected profits associated with four different investment projects for Company Millennium. Which of the project(s) in the table above will be feasible for Company Millennium if the current market interest rate is 8 %? All of them A and B Only A B and C

2. You are given the following data C=260+0.5 (1-t) Y (Consumption) I=240 (Investment) t= 0.5 (tax rate) G=100 (Government Spending) a. What does (1-t)Y show us? b. What is the equilibrium level of output? c. What will be the change in the equilibrium value of output if autonomous consumption increases by 60?