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Consider an open economy with a current population of 0 . 5 5 million people, and where the potential GDP is $ 3 . 2

Consider an open economy with a current population of 0.55 million people, and where the potential GDP is $3.24 billion. Consumer expenditure is represented by the following equation: C =60+0.75DI. Exports are constant at $500 million, and investors want to spend $400 million at every level of income. The government purchases are $300 million, imports are constant at $450 million, and taxes are $200 million. now, consider that investors become optimistic about the country's future, and raise their investment to $565 million in the fellowing period. At the same time, given the birth rate, mortality rate, and net immigration, the economy experienced an increase of 20% in its population. What is the value of the simple multiplier ?

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