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The federal government decides to stimulate the economy and increases government expenditure on new infrastructure projects...

The federal government decides to stimulate the economy and increases government expenditure on new infrastructure projects by 90 billion. The marginal propensity to consume is MPC = 0.3 and the marginal propensity to import is MPI = 0.08. Suppose the crowding-out effect is twice the amount of government spending, what is the change in output caused by the stimulus package of 90 billion in a closed economy?

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