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If government increases lump-sum taxes by $20 billion and the economy's MPC is .6, then the: Select one: a. equilibrium GDP will decrease by $45
If government increases lump-sum taxes by $20 billion and the economy's MPC is .6, then the: Select one: a. equilibrium GDP will decrease by $45 billion. b. consumption schedule will shift downward by $12 billion. c. equilibrium GDP will increase by $45 billion. d. consumption schedule will shift upward by $18 billion
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