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Consider an open economy with government. At the point of EQUILIBRIUM: the country's real GDP is $120 billions, Taxes $10 bn, Consumption: $70 billions, Gross
Consider an open economy with government. At the point of EQUILIBRIUM: the country's real GDP is $120 billions, Taxes $10 bn, Consumption: $70 billions, Gross Investment is $20 bn, Government expenditure is $5 bn, MPC is 0.7 and MPM is 0.25
Given the data above calculate the following:
i. Disposable Income
ii. Savings
iii. Net Exports
iv. MPS
v. Open Economy Multiplier
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