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Find the value of the open economy multiplier

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Reference no: EM131963487

1.) Let us characterize an economy as follows:

s =0.15            I0=400        G0= TX0 = IM0 = 0

m = 0.05     EX0 = 600

a) Find the value of the open economy multiplier

b) What is the equilibrium level of GDP for this economy?

Reference no: EM131963487

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