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(Solved): Consider a closed economy where Y = c0 + c1(Y - T) + I + G. Suppose the marginal propensity to consu ...



Consider a closed economy where Y = c0 + c1(Y - T) + I + G. Suppose the marginal propensity to consume c1 equals 0.8. Given this information, which of the following event(s) will cause the largest increase in output? Group of answer choices G increases by 400 T decreases by 400 I increases by 350 All options give the same result



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