Assume the marginal propensity to consume

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Assume the marginal propensity to consume for U.S. households equals .9, and the marginal propensity to import for the united states equals .1. Suppose an increase in investment of $10 million occurs at each level of income. What does the value of the multiplier for the united states equal? A. 2 B. 3 C. 4 D. 5

Reference no: EM13830779

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