If government spending is increased by $5, and this increase in spending is financed by a tax increase in the same amount, the effect on equilibrium would be: A). zero – the balance each other out. B) an increase in equilibrium of $10. C) a decrease in equilibrium of $5. D) an increase in equilibrium of $5.

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A: a. MPC = 0.6 ∆G=$800

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A: Note: "My Apologies" You have posted a question with multiple parts. I will do only fist three…

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A:

Q: Which of the following is true regarding the simple tax multiplier?

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A:

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A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Shift the aggregate demand curve on the graph to show the impact of a tax hike. 130 120 Aggregate…

A:

Q: Which of the following statements is correct?     A decrease in the size of a tax always decreases…

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