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Consider a simple Keynesian model with taxation. Suppose the marginal tax rate is t = 0.4 and the marginal propensity to consume is c =
Consider a simple Keynesian model with taxation. Suppose the marginal tax rate is t = 0.4 and the marginal propensity to consume is c = 0.66. Then an exogenous increase in investment demand of 100 units will: Group of answer choices Increase equilibrium output by approximately 150 units Increase equilibrium output by approximately 167 units Increase equilibrium output by approximately 267 units Increase equilibrium output by approximately 750 units
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