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23) If the marginal propensity to consume is 0.3, the marginal propensity to tax is 0.1 and the marginal propensity to import is also 0.2,

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23) If the marginal propensity to consume is 0.3, the marginal propensity to tax is 0.1 and the marginal propensity to import is also 0.2, in an open economy with government current expenditure, then an increase of 200m in exports (X) will result in AD increasing... a) 100m. (b) 125m. (c) 200m. (d) 700m. (e) none of the above. 24) which ofthe following is a goal of quantitative easing? a) to increase unemployment rates b) to decrease interest rates c) to decrease the money supply d) to decrease government spending 25) In which of the following situation would central bank be most likely to implement quantitative easing? a) Low unemployment and low inflation b) High unemployment and low ination c) high unemployment and high inflation d) Low unemployment and low ination

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