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The federal government decides to stimulate the economy and increases government expenditure on new infrastructure projects by 110 billion. The marginal propensity to consume is

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The federal government decides to stimulate the economy and increases government expenditure on new infrastructure projects by 110 billion. The marginal propensity to consume is MPC - 0.35 and the marginal propensity to import is MPI = 0.03. Suppose the crowding-out effect is twice the amount of government spending, what is the change in output caused by the stimulus package of 110 billion in a closed economyT Number

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