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The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to consume out of disposable income (MPC), the net tax

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The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to consume out of disposable income (MPC), the net tax rate (t), and the marginal propensity to import (in). J a. Recall that z. the marginal propensity to spend out of national income, is given by the simple expression 2: MPC(1 - t) m. By using this expression, compute z and the simple multiplier for each ofthe economies and ll in the table. (Round your response to two decimal places. In computing the simple multiplier, use the rounded values of 2 obtained in column "2".) 1 Economy MPc t m z=MPcmt)m Simple Multiplier: (1-2) 0.90 0.30 0.15 0.90 0.30 0.30 A B c 0.90 0.40 0.30 D 0.95 0.40 0.30 Emma mama

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