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Consider a country under afixed exchange rate that is open to capital mobility (UIP holds). If G increases from 10 to 20 and the marginal

Consider a country under afixed exchange ratethat is open to capital mobility (UIP holds).IfGincreases from 10 to 20 and the marginal propensity to consume home goods isMPCh=0.5 , then output Y rises by

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10

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