Business
Business, 25.04.2020 03:10, dmead22284

Imagine a hypothetical economy that has no foreign trade and is initially in equilibrium. Assume that the marginal propensity to consume (MPC) in this economy is 0.75, the marginal propensity to import (MPI) is 0.10, and there are no taxes. Then a decline in government spending by $60 million will result in a total reduction in equilibrium income of:

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Imagine a hypothetical economy that has no foreign trade and is initially in equilibrium. Assume tha...

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