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Suppose that the South African economy is depicted by the following information:
Y = 10 000
S = -250 + 0.65Y
I = 500
G = 1 100
1 500 = 200 + mY
Which of the following is correct?
i. The multiplier in the economy is 2.083.
ii. The equilibrium level of income is 1 650.00.
iii. The equilibrium level of income is 2 115.30.
iv. The multiplier in the economy is 1.282.