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11. If the government spends $10 million to build health care facilities, how much can the GDP increase because of the multiplier effect if we
11. If the government spends $10 million to build health care facilities, how much can the GDP increase because of the multiplier effect if we assume that leakages are 45% of all new spending? 12. If the government reduces taxes by $20 million1 how much will the GDP change if leakages are 50% of new spending? 13. The multiplier predicts the total e'ect of a change in taxes. However, what else might happen if taxes are changed? 14. How bad is Canada's debt? Explain with reference to the Debt-to-GDP ratio
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