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In a Hypothetical economy,
C = 124 +.75 (DISPOSIBLE INCOME)I = 60 - 9 r G = 156NETXPORTS = 38-.05Y
The government levies a 20% proportional tax, therefore
Taxes = .20YAlsoMd = .05Y+22+ 120 R Ms = 100+ 11 r
A) Determine the equilibrium value of income Y, and the interest rate , R.
B) Check that leakages equal injections.
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