Calculate the value of the government purchases multiplier if the marginal propensity to consume equals 0.9, the tax rate equals 0.25, and the marginal propensity to import equals 0.15
What will be an ideal response?
Government purchases multiplier = 1 / 1 - (0.9(1 - 0.25 ) - 0.15 ) = 2.11
Economics
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Indicate whether the statement is true or false
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