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The small island nation of kaboom is a simple economy with no government, no taxes, and no imports or exports. kaboomers (citizens of kaboom) are creatures of habit. they have a rule that everyone saves exactly 40 percent of income. assume that planned investment is fixed and remains at 200 million kaboomian dollars. further assume that autonomous consumption (independent of y) is zero, so consumption (c) is mpc times upper y .
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