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Value of the canadian spending multiplier

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Reference no: EM132550664

Assume that Canadian government taxes away $0.55 of each dollar of new income, that 40% of the remaining $0.45 of disposable income is spent on imports, and that 9% of disposable income is saved. Enter your responses below rounded to 2 decimal places.

a. The marginal propensity to withdraw is.

b. From each new dollar of income $ is spent on domestic consumption items.

c. The value of the Canadian spending multiplier is

Reference no: EM132550664

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