Suppose policymakers decide to increase government spending by 100 and simultaneously increase taxes by 100. Explain what effect this simultaneous increase in G and increase in T will have on the economy and on the budget deficit.

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The Answer of Suppose policymakers decide to increase government spending by 100 and simultaneously increase taxes by 100. Explain what effect this simultaneous increase in G and increase in T will have on the economy and on the budget deficit.

Suppose Policymakers Decide to Increase Government Spending by 100 and Simultaneously