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Question One
Consider the following information that relates to a certain
economy
C= 40 +0.35
I = 70- 2r
G=400
T= 15+0.2Y
X=240
M=45+0.4Y
r = 0.5
Required:
i). Compute the autonomous investment, government
expenditure, export, and tax multipliers
ii). Find the equilibrium income



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