Assume that the marginal propensity to save is 0.4 and the marginal propensity to import is 0.2.
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Assume that the marginal propensity to save is 0.4 and the marginal propensity to import is 0.2. Calculate the change in the equilibrium level of national income if investment spending declines by $10 million. What is the size of the openeconomy multiplier?
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To calculate the change in the equilibrium level of national income we need to determine the value o...View the full answer
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