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04-21-2008, 10:12 AM
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| Can someone please explain the multiplier in economics to me? I am having trouble with this and really need some help. My question is: If the marginal propensity to consume is equal to two-thirds (.667), by how much does GDP increase if exports increase by 30? Please supply an exact number. If someone could please teach me how to figure this out I would be so grateful.      |
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