You are given the following information on the macroeconomy (in millions dollars):
Consumption:250 + 0.50Y
Investment:100 + 0.10Y
Imports50 + 0.25Y
Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for a decrease in autonomous investment of $75 million.
103) Briefly discuss the relationship between leakages and the size of the multiplier.
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