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The government plans to spend an additional million on road construction to access a new mining site in northern Canada. Economists estimate the marginal propensity
The government plans to spend an additional million on road construction to access a new mining site in northern Canada. Economists estimate the marginal propensity to import is 12.5% and the marginal propensity to consume is 36%. Ignoring any losses to the "crowding out effect", in theory how large could aggregate demand grow from this initial investment by government? Question 8 options: $485.4 million $250.0 million $390.6 million $326.8 million
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