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Calculate the multiplier for economy x

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Reference no: EM132639747

Use the following information on economy X to answer the questions below.Marginal propensity to consume (c) = 0.6

Investment= 300 million

Autonomous consumption = 120 million

1. Calculate the multiplier for economy X.

2. Use the multiplier calculated in Q.4.2.1 to calculate the equilibrium income for economy X.

Reference no: EM132639747

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