The equation {1/[1 - (MPC - MPM)]} represents the

Name: The equation {1/[1 - (MPC - MPM)]} represents the
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The equation is the open economy multiplier, as it takes into account both the marginal propensity to consume (MPC) and the marginal propensity to import (MPM), which are important factors in an open economy. The open economy multiplier calculates the impact of a change in government spending or investment on a country's income, taking into account the leakages caused by imports.

The Equation {1/[1 - (MPC - MPM)]} Represents the