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The diagram below shows desired aggregate expenditure for a hypothetical economy . Assume the following features of this economy : marginal propensity to consume (
The diagram below shows desired aggregate expenditure for a hypothetical economy . Assume the following features of this economy : marginal propensity to consume ( mpc ) = 0.75 net tax rate ( t ) = 0.20 no foreign trade fixed price level all expenditure and income figures are in billions of dollars . 1 ) Refer to Figure 1. What is total autonomous expenditure ?
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