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Question 23 (1 point) Suppose the U.S. has a closed economy with GDP (Y) equal to $18.5 trillion, consumption (C) equal to $11.6 trillion,
Question 23 (1 point) Suppose the U.S. has a closed economy with GDP (Y) equal to $18.5 trillion, consumption (C) equal to $11.6 trillion, government spending (G) equal to $4.3 trillion, transfer payments (TR) equal to $1.5 trillion, and taxes (T) equal to $3.1 trillion. Suppose the government increases its spending on national defense such that government spending increases by $0.4 trillion. What must happen to investment spending (1)? That is, what is the dollar amount by which investment spending changes? Assume the values for GDP and consumption do not change. Provide your answer in trillions of dollars rounded to one decimal place. Use a negative sign "-" for negative changes. Do not include any symbols, such as "S," "%," or "in your answer. Your Answer: Answer 1:17 PM
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