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If the government wants to increase output by $40 billion, and the marginal propensity to consume 0.8 in a model with lump-sum taxes, then government
If the government wants to increase output by $40 billion, and the marginal propensity to consume 0.8 in a model with lump-sum taxes, then government spending should increase by 0 a $40 billion O b,$8 billion 0 c. $50 billion 0 d_$32 billion
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