If an economy consumes 75 percent of any increase in real GDP and spends 10 percent of this increased income on imports, then a decline in government spending by $60 million will result in a total reduction in equilibrium income of:

a. $171.43 million.
b. $123.47 million.
c. $151.63 million.
d. $73.47 million.
e. $71.43 million.


a

Economics

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