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Consider an economy where the real interest rate is R = 0.05, the ination rate is :rT = 0.05, the marginal propensity to consume of

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Consider an economy where the real interest rate is R = 0.05, the ination rate is :rT = 0.05, the marginal propensity to consume of households is E = 0.6. and the sensitivity of prices to demand conditions is E = 0.3. The government cuts taxes by 3.2 million dollars. Output will increase by million dollars. Round your answers to 3 decimal places {for example, 3.454 should be rounded down to 3.45, and 3.455 should be rounded up to 3.46}

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