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If the marginal propensity to consume (MPC) = 0.4, and the marginal propensity to import (MPM) = 0.2, calculate the changes in the economy below
If the marginal propensity to consume (MPC) = 0.4, and the marginal propensity to import (MPM) = 0.2, calculate the changes in the economy below if investment (I) were to increase by 6100m. AD = C + I + (X - M) (12.000m = 68,000m + 61,000m + (66,000m - 63,000m) If the marginal propensity to consume (MPC) = 0.8, and the marginal propensity to import (MPM) = 0.2, calculate the changes in the economy below if exports (X) were to increase by 6100m. AD = C + I + (X] - M) (35,000m = 625,000m + 610,000m + (66,000m - (6,000m)
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