The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $70 million.Government spending also increases by $70 million and consumption falls by $10 million.If GDP remains the same and Alpetra is a closed economy,then investment

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In a closed economy, GDP = C + I + G. Since GDP remains the same and government spending increases by $70 million while consumption falls by $10 million, investment must decrease by $60 million to balance the equation.

The Fictional Country of Alpetra Increases the Income Tax Rate