Suppose C = 100 + 0.5(Y - T) and T = 200,I = 150,G = 250 and NX = 50.If government purchases are reduced from G = 250 to G = 210,and at the same time net exports increase from NX = 50 to NX = 60,the net result is a decrease in Y (GDP) of
A) 20.
B) 30.
C) 40.
D) 50.
E) 60.
Correct Answer:
Verified
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