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Given a hypothetical consumption function of the form: C=a + kYd where Page 3 of 3 Yd=Y - T and Y = Income, T =

Given a hypothetical consumption function of the form: C=a + kYd where Page 3 of 3 Yd=Y - T and Y = Income, T = Taxes and that government spending and Investment are exogenously determined at G and Irrespectively; Derive balanced budget multiplier and offer an interpretation for the same.

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