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Stranglethom has an open economy with government. The economy of Stranglethorn has the following features: Autonomous desired consumption expenditures are $350, Marginal propenalty to consume
Stranglethom has an open economy with government. The economy of Stranglethorn has the following features: Autonomous desired consumption expenditures are $350, Marginal propenalty to consume out of disposable Income is 0.80. Net tax rate of national income is 10% Autonomous desired investment expenditures are $200, Autonomous goverment purchases are $300 Autonomous export expenditures an $150. Marginal propensity to import is 0.15 The level of desired autonomous aggregate expenditure in this economy is $ . (Round your response to the nearest whole number) The value of marginal propensity to spend in Stranglethorn is equal to |(Round your response to two decimal places,) The value of the simple multipler in Stranglethorn is equal to . (Round your response to two decimal places. Use the rounded numbers obtained above For example, if the marginal propensity it spend is found to be 0.375 but rounded to 0.38, you should use the value of 0.38, not 0.375) Now suppose that the economy in Stranglethom did not have a government and there was no foreign trade (Un. Stranglethom had a closed economy) The value of the simple multiplior in this cane would ba (Round your maponse to one decimal place.) By comparing the value of the multipliers, we can see that the value of the multiplier for an open economy with government is the value of the multiplier for a closed economy with no government
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