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Assume that the marginal propensity to consume equals 0.8, the income tax rate equals 0.3, and the marginal propensity to import equals 0.2. The marginal leakage rate is ________ and the size of the multiplier is ________.
A) 0.70; 3.33
B) 0.60; 2.5
C) 0.64; 1.56
D) 0.50; 2.0
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Macroeconomics

Macroeconomics


Edition: 12th
Author:
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