Problem
Using Open-Economy Multipliers. In an open economy, the marginal propensity to consume is 0.9, and the marginal propensity to import is 0.3. How much of an increase in investment would be necessary to raise GDP by 200? What would be your answer if this was a closed economy?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.