If, in an economy with C = $5000 + 0.6Yd, I = $1000, G = $800, T = $1000, NX = $-200, where the dollar amounts are in millions of dollars, government spending increases by $200 million, what will be the associated change in equilibrium income (in millions)?
A) $200
B) $500
C) $333
D) $400
E) None of the above
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If, in an economy with C = $5000 + 0.6Yd, I = $1000, G = $800, T = $1000, NX = $-200, where the doll...
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