Assume the government cuts its purchases by 150billion as a


Assume the government cuts its purchases by $150billion. As a result, the budget deficit is reduced by $40 billion,private domestic saving decreases by $10 billion, disposablepersonal income decreases by $80 billion and the trade deficit isreduced by $15 billion. By how much has national income (Y)changed?

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Econometrics: Assume the government cuts its purchases by 150billion as a
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