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4. Consider the following information for a closed economy, I C = C + CYD = 40 + 0.25YD 1 =1 =5 G = G=0
4. Consider the following information for a closed economy, I C = C + CYD = 40 + 0.25YD 1 =1 =5 G = G=0 T=T - 10 If taxes increase by 10 units, by how much will the equilibrium output change? A. Equilibrium output will decrease by 3.33 units. B. Equilibrium output will decrease by 13.33 units. C. The equilibrium output will decrease by 2.5 units. D. It is not possible to compute the change in equilibrium output
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