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Suppose consumption expenditures in Japan can be modeled by the equation: C= 150 trillion+ 0.8. Yd, where Yo is aggregate disposable income, and * is

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Suppose consumption expenditures in Japan can be modeled by the equation: C= 150 trillion+ 0.8. Yd, where Yo is aggregate disposable income, and * is the symbol for a yen. Initially, aggregate personal income is *500 trillion, and taxes are *100 trillion. If the Japanese government cuts taxes by 150 trillion, what will happen to real GDP? A. It rises by *200 trillion. B. It rises by *40 trillion. C. It falls by *40 trillion. D. It rises by *370 trillion. E. It falls by *200 trillion

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