The government purchases decrease

Reference no: EM13757551

Assume the government purchases decrease by $10 billion, with other factors held constant, including price level. calculate the change if the government, instead of reducing its pruchases, increased autonomous net taxes by $10 billion
a. 0.9
b. 0.8
c. 0.75
d. 0.6

Reference no: EM13757551

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