2. DATA RESPONSE QUESTION, THE CIRCULAR FLOW OF INCOME. The figures in the table below...
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2. DATA RESPONSE QUESTION, THE CIRCULAR FLOW OF INCOME. The figures in the table below represent the only income payments received by households. Assume that there are injections into and withdrawals from the circular flow. Investment is 10 billion, government spending 20 billion and exports 30 billion. Savings are 15 billion, and taxes are 15 billion. (i) What must be the equilibrium level of imports? (ii) Calculate household domestic consumption. (4 marks)
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