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


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