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The question below is based on the following equations, which refer to a model o...
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The question below is based on the following equations, which refer to a model of a closed economy without a government sector.
A = C + I
C = 600 + 0,75Y I = 200 Which of the following statements is/are correct?a) The value of the multiplier is 0,25.
b) The equilibrium income level is 3 200.
c) If investment increases, the equilibrium level of income will increase.
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