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To stimulate economy in serious recession

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Question

Using the appropriate formulas and an MPC of 0.85, calculate the multipliers for each of the two scenarios. Next, calculate the overall impact each will have on the increase in money circulating through the economy.

To stimulate an economy in a serious recession, the government spends a total of $700 million to send each person a stimulus check worth $600.

Reference no: EM133359330

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