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Solve in details , no copy paste 7. Imagine there were only two consumers in the economy, A and B, who earn equal share of

Solve in details , no copy paste

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7. Imagine there were only two consumers in the economy, A and B, who earn equal share of national income, but A has a higher marginal propensity to consume (you may assume linear consumption function for each consumer). If the government wanted to increase taxes, which consumer should it tax first? Prove using Keynesian-cross model

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