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Business, 01.02.2022 17:40 supergirl101911

Suppose the government announces a permanent increase in annual Government Purchases (G) of $25,000,000. Analyze the impact of this policy on Total Saving (S) if: a) The government announces that it will permanently raise taxes by the same amount immediately. b) The government announces that it will permanently raise taxes by the necessary amount beginning in 3 years. How are your answers affected if the increase in Government Purchases only lasts for 2 years?

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Suppose the government announces a permanent increase in annual Government Purchases (G) of $25,000,...

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