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e. The statistical agency of an economy produces the following estimations for each of the below measures that are relevant for the simple Keynesian multiplier.
e. The statistical agency of an economy produces the following estimations for each of the below measures that are relevant for the simple Keynesian multiplier. Saving ratio = 5% Imports ratio = 8% Tax revenue as a percentage of GDP = 7% Suppose government expenditure increases by $12,000,000. Calculate what will be the total value of the economic activity created from this increase in government spending. Display your workings.
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