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Use the Simple Classical Macroeconomic Model to answer this question. U.S. consumers are feeling uncertain about future economic conditions and start to save more money.
Use the Simple Classical Macroeconomic Model to answer this question. U.S. consumers are feeling uncertain about future economic conditions and start to save more money. Thus, the increased savings level alters the consumption function from 95 to 90 percent. What would be the change to GDP given the current conditions. Note: Use the Values from Question 45 where Taxes =3,000, Investment = 1,500, and Government Spending = 4,000. a. 30,000 b. 56,000 c. 28,000 d. 26,500
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