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Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C =150+0.71 Y , I =300,
Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are:
C=150+0.71Y,
I=300,
G=700,
T=0,
X=120,
IM=0.06Y.
The marginal propensity to spend on national income,
z,
is ________.
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