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The MPC=0.7 and the MPM=0.3 and government imposes a tax of $10 billion. Calculate the impact on aggregate expenditures in an open economy. Multiple choice
The MPC=0.7 and the MPM=0.3 and government imposes a tax of $10 billion. Calculate the impact on aggregate expenditures in an open economy. Multiple choice question. Aggregate expenditures fall by $7 billion. Aggregate expenditures fall by $4 billion. Aggregate expenditures fall by $10 billion. Aggregate expenditures increase by $10 billion
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