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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
Z (autonomous) = 200
X (autonomous) = 300
m=0,13
Which of the following is correct?
i. The multiplier in the economy is 1.282.
ii. The equilibrium level of income is 3 436.95.
iii. The equilibrium level of income is 2 499.90.
iv. The multiplier in the economy is 2.083.