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2.4.4 The multiplier

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Question 12

An economy has a marginal propensity to save of 0.15, a marginal propensity to tax of 0.20, and a marginal propensity to import of 0.15.

Which one of the following is the correct size of the multiplier?

0.50.50.5

1.51.51.5

2.02.02.0

5.05.05.0

2.4.4 The multiplier Questions

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  3. /2.4.4 The multiplier