In an Open Economy,the Marginal Propensity to Consumer Is 0

question 1

Short Answer

In an open economy,the marginal propensity to consumer is 0.75,and the marginal propensity to import is 0.15.Calculate the change in equilibrium GDP if exports fall by $50 billion.

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Definitions:

Complex Tasks

Activities or jobs that involve multiple steps, require higher-level thinking, and sometimes need the integration of different skills or knowledge bases to complete.

Extrinsic Motivation

The drive to perform activities or achieve goals due to external rewards or pressures rather than personal interest or intrinsic satisfaction.

Intrinsic Motivation

Motivation that stems from internal rewards and personal interest in the task at hand.

Performance

The act of performing a task or function, often measured against preset known standards of accuracy, completeness, cost, and speed.