If the marginal propensity to consume in a municipality is 0.8, what is the value of the
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If the marginal propensity to consume in a municipality is 0.8, what is the value of the simple multiplier? If a new stadium that adds $30 million in new consumption expenditures is built, what is the impact on the economy based on this multiplier? Suppose the marginal propensity to import is 0.3, what happens to the multiplier and to the impact on the economy?
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The simple multiplier is calculated as Simple Multiplier 1 1 Marginal Propensity to Consume Given th...View the full answer
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