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Advanced Placement (AP), 27.02.2020 01:26 gmoney58

Assume the Japanese spend 4/5 of their disposable income.
Assume that the Japanese government increases its spending by 50 trillion and in order to maintain a balanced budget simultaneously increase taxes by 50t.
Calculate the effect of these changes on the Japanese Aggregate Demand.

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Assume the Japanese spend 4/5 of their disposable income.
Assume that the Japanese government...
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