Answer to Question #332894 in Microeconomics for Unknown

Question

Given the following information for a small open economy: C=R1 000+0,2Yd The government spending is R300, The proportional tax rate is 28%, Exports are R100, Z = R * 2O + 0, 1Y and Investment is R200.

Calculate the multiplier and equilibrium level of income.

O d. 1,60 and R2 528 respectively

O c. 1,85 and R2 923 respectively

O b. 1,32 and R2 086 respectively

O a. 1,05 and R1 659 respectively

Answer 1

d. 1,60 and R2 528 respectively