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Assume that the government of a country decides to give out tax refunds of $4.5 million to small domestic firms that are struggling. If the
Assume that the government of a country decides to give out tax refunds of $4.5 million to small domestic firms that are struggling. If the marginal propensity to save in the country is 0.25, then what is the maximum impact this measure will have on the GDP of the country? (1 point) $1.5 million decrease in GDP $7.5 million decrease in GDP $7.5 million increase in GDP $13.5 million decrease in GDP $13.5 million increase in GDP
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