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Evidence from previous natural disasters in Pakistan suggests that economic impacts may persist. Examine the economic impacts of the floods in Pakistan. Assume due to

  1. Evidence from previous natural disasters in Pakistan suggests that economic impacts may persist. Examine the economic impacts of the floods in Pakistan.
  2. Assume due to the severity of the June 2022 floods on households, the government of Pakistan received a USD 200 million grant from USA as Household Upkeep Fund. Calculate the effect of the government spending multiplier in Pakistan assuming the marginal propensity to save is 10%.

ANSWER b:

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