Multiple Choice
If an economy has a marginal propensity to import of 0.3 and the economy's balance-of-trade deficit is 15, how much must the economy contract its GNP if income contraction is to be the method of removing the balance-of-trade deficit?
A) 4.5
B) 45
C) 50
D) 200
Correct Answer:
Verified
Correct Answer:
Verified
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