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please reply this question. In an economy, total taxes are $5 billion. The government decides to reduce taxes by 10%, causing disposable income to also

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In an economy, total taxes are $5 billion. The government decides to reduce taxes by 10%, causing disposable income to also increase by 10%. If the MP0 in this economy is 0.8, calculate: 0.1) The spending multiplier. Recall that 1 the spending multiplier = MPW (2 Marks) Q2) The total eventual increase in aggregate demand in the economy. (2 marks)

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