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Consider a closed classical economy where the government increases taxes by $1,000. If the marginal propensity to consume (MPC) is 0.7, describe what happens to
Consider a closed classical economy where the government increases taxes by $1,000. If the marginal propensity to consume (MPC) is 0.7, describe what happens to the following. Be sure to indicate the magnitude of any change.
Consumption
Private saving
Public saving
Investment
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