The economys aggregate output demanded

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Currently, the economy's aggregate output demanded is $100 billion. The government thinks that is is too small, so it wants to increase it by implementing expansionary fiscal policies. It decides to reduce taxes by $10 billion with this goal in mind. Let's assume that the marginal propensity to consume is 0.9 and supply curve is vertical at the loanable funds market. Then, the economy's aggregate output demanded will be $______ billion.

Reference no: EM131007725

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