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23 March, 08:35

The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption, and government spending remains the same and Alpetra is a closed economy, what is the change in investment?

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  1. 23 March, 10:51
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    There is no change in investment for Apletra.

    Explanation:

    Because GDP, consumption, and government spending remains the same there would also be no chane in investment for Alpletra.
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