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    Exam 7: Equilibrium in the Flexible-Price M Odel
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    The Change in Consumption Spending ( C)
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The Change in Consumption Spending ( C)

Question 48

Question 48

Multiple Choice

The change in consumption spending ( The change in consumption spending (     C)  which occurs as a result of a change in government purchases (     G)  is equal to A)  C<sub>y</sub> x   G B)  -C<sub>y</sub> x   G C)  -C<sub>y</sub> x (1-t)  x   Y D)  0 C) which occurs as a result of a change in government purchases ( The change in consumption spending (     C)  which occurs as a result of a change in government purchases (     G)  is equal to A)  C<sub>y</sub> x   G B)  -C<sub>y</sub> x   G C)  -C<sub>y</sub> x (1-t)  x   Y D)  0 G) is equal to


A) Cy x The change in consumption spending (     C)  which occurs as a result of a change in government purchases (     G)  is equal to A)  C<sub>y</sub> x   G B)  -C<sub>y</sub> x   G C)  -C<sub>y</sub> x (1-t)  x   Y D)  0 G
B) -Cy x The change in consumption spending (     C)  which occurs as a result of a change in government purchases (     G)  is equal to A)  C<sub>y</sub> x   G B)  -C<sub>y</sub> x   G C)  -C<sub>y</sub> x (1-t)  x   Y D)  0 G
C) -Cy x (1-t) x The change in consumption spending (     C)  which occurs as a result of a change in government purchases (     G)  is equal to A)  C<sub>y</sub> x   G B)  -C<sub>y</sub> x   G C)  -C<sub>y</sub> x (1-t)  x   Y D)  0 Y
D) 0

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