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Suppose the government decides to increase taxes by $30 billion in order to increase unemployment benefits by $50 billion. Suppose the government decides to increase taxes by $40 billion in order to increase Social Security benefits by the same amount. If the MPC is 0.85, will aggregate demand increase, decrease or remain unchanged at current prices with this combined tax transfer policy?

User Karan Maru
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$50million

I just took the test
User Dosha
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