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Please show working Use the following information to answer Questions 3 and 4. Y=ctl+G T - 2000 50-2000 + (1 - 075)(6) T-2200 The government
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Use the following information to answer Questions 3 and 4. Y=ctl+G T - 2000 50-2000 + (1 - 075)(6) T-2200 The government runs a balanced budget 3. Suppose the government increases government expenditure by 173 and at the same time increases lump sum bases by RIDD. This will result in a a decline in equilibrium income h in increase in equilibrium income C. disposable income falling d disposable income increasing e disposable income remaining unchanged 4. Given the change in fiscal policy described in question 3 above, the change in consumption and private savings will be 1 825 and-R175, respectively b. -RIOO and -R25, respectively 6 -R75 and -R35, respectively d -875 and R25, respectively e. R10) and R25, respectivelyStep by Step Solution
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