MCQOPTIONS
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| 1. |
In the simple Keynesian model, if the tax function is given by T=0.15Y and the consumption function is C= 50 + 0.7 YD then a 10-unit ncrease in government spending would increase equilibrium income by |
| A. | 10 units |
| B. | 11.2 units |
| C. | 22.4 units |
| D. | 30 units |
| Answer» C. 22.4 units | |