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The economy faces the following functions: C = 40+ 0.4YD T = 0.1 YI =100 G =75 X =25 M =0.02Y a) Find the volume
The economy faces the following functions: C = 40+ 0.4YD T = 0.1 YI =100 G =75 X =25 M =0.02Y a) Find the volume of imports at equilibrium? b) Find the value of the investment multiplier and show the impact on output when RBI eases interest rates leading to an increase in investment by 50
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