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    Macroeconomics Study Set 39
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    Exam 11: Aggregate Demand I: Building the Is-Lm Model
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    How Can the Government Expenditure Multiplier Be Reinterpreted in Terms
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How Can the Government Expenditure Multiplier Be Reinterpreted in Terms

Question 109

Question 109

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How can the government expenditure multiplier be reinterpreted in terms of savings?

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We know that blured imageY / blured imageG = 1/(1-MPC). Rearrang...

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