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Consider an open economy that is described by the following model: C = 200m + 0.45Y M = 80m + 0.20Y Additional information I :

Consider an open economy that is described by the following model:

C = 200m + 0.45Y M = 80m + 0.20Y

Additional information I : Investment = R150m G : Government spending = R300m t : Tax rate = 18% X : R70m M : Imports C : Consumption Y : Income

Calculate the multiplier. (3) Calculate the equilibrium income. (3) Calculate the level of total imports at equilibrium.

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