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Assume that Canadian government taxes away $0.45 of each dollar of new income, that 5% of the remaining $0.55 of disposable income is spent on
Assume that Canadian government taxes away $0.45 of each dollar of new income, that 5% of the remaining $0.55 of disposable income is spent on imports, and that 8% of disposable income is saved.Enter your responses below rounded to 2 decimal places.
a. The marginal propensity to withdraw is.
b. From each new dollar of income $is spent on domestic consumption items.
c. The value of the Canadian spending multiplier is.
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