Assume that the marginal propensity to save is 0.4 and the marginal propensity to import is 0.2.
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Assume that the marginal propensity to save is 0.4 and the marginal propensity to import is 0.2. Calculate the change in the equilibrium level of national income if investment spending declines by $10 million. What is the size of the openeconomy multiplier?
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