In the simple Keynesian model, if the tax function is given by T = 0.15Y and the consumption function is C = 50 + 0.7YD then a 10-unit increase in government spending would increase equilibrium income by

a. 10 units.
b. 11.2 units.
c. 22.4 units.
d. 30 units.
e. none of the above


B

Economics

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