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Decrease the autonomous taxes

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Consider an economy with a flat AS curve. Also assume MPC out of disposable income, b = 0.8 and marginal propensity to import out of Y, m = 0.2 (there are no induced taxes). If the government desires to shift the AD curve rightward by $3 billion, it must decrease the autonomous taxes by (note the tax is autonomous)

Reference no: EM132503444

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