now lets modify our model a bit lets add a fourth, Managerial Economics

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now lets modify our model a bit lets add a fourth

Now, let's modify our model a bit. Let's add a fourth sector of spending so that Y = C + I + G + X_n with X = X_oand M = M = f (Y). Will this change, by itself, increase, decrease or not affect the magnitude of the government spending multiplier? Describe!

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Managerial Economics: now lets modify our model a bit lets add a fourth

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Managerial Economics: now lets modify our model a bit lets add a fourth

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