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  3. two identical countries, country a and country b,

Two identical countries, Country A and Country B, can each be described by a Keynesian-cross...

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Accounting

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Two identical countries, Country A and Country B, can each be described by a Keynesian-cross model. The MPC is 0.6 in each country. Country A decides to increase government spending by $2 billion, while Country B decides to cut taxes by $2 billion. In which country will the new equilibrium level of income be greater? Show all computations

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