The purchase of treasury stock . A. decreases assets and increases stockholders' equity B. increases assets and decreases stockholders' equity C. decreases assets and stockholders' equity D. increases assets and stockholders' equity

Consider an economy where the government's budget is initially balanced. the production function, consumption function and investment function can be represented as follows y equals k to the power of alpha l to the power of 1 minus alpha end exponent c equals c subscript 0 plus b left parenthesis y minus t right parenthesis i equals i subscript 0 minus d r suppose that taxes increase. what happens to the equilibrium level of output?