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Unformatted text preview: a > 0 Multiplier = 1 / (1 MPC) MPC = the fraction of extra income that a household consumes rather than saves GDP deflator = Nominal GDPReal GDP x 100 CPI: = Price of basket of goods and servicesPrice of basket in base year x 100 (1/R) A 0 = MS NCO = purchase of foreign assets by domestic residents purchase of domestic assets by foreign residents NCO = NX NX = exports imports S = I + NX S = I + NCO Real Exchange Rate = Nominal Exchange Rate x Domestic PriceForeign Price x 100 * e x PP with PPP e = P*/P...
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This note was uploaded on 03/18/2009 for the course ECON 2020 taught by Professor Kaplan,jul during the Spring '08 term at Colorado.
- Spring '08