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Question B11: Open Economy Multipliers Consider the following information: s = 0.27, dM/dY = 0.15; dY/dM = 0.35, dG = 525 (millions of dollars) where

Question B11: Open Economy Multipliers

Consider the following information: s = 0.27, dM/dY = 0.15; dY/dM = 0.35, dG = 525 (millions of dollars) where s = marginal propensity to save dM = change in imports, dY = change in income and dG = change in government expenditures (millions of dollars). Compute the change in income due to the government expenditure multiplier, and show how marginal propensity to save, consume and import is calculated. (Show the Computation and formulas!)

( I need answer with formulas and computation )

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