Chat with AIExam 13: Fiscal Policy Appendix Taxes and the Multiplier
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If the marginal propensity to save is 0.1, then the government spending multiplier has a value of
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(41) Real GDP equals $200 billion, the government collects 20% of any increase in real GDP in the form of taxes, and the marginal propensity to consume is 0.8. What is the value of the expenditure multiplier?
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