Suppose that for a particular economy and period, investment was equal to 200 , government expenditures were equal to 100 and taxes were determined at 150. Assume that the consumption function is : C = 20 + 0.6Yp where Yp is disposable income. - If government expenditures for the above economy are increased by 100 and this increase is financed by a 100 increase in taxes, what will be the amount of change in the equilibrium income?

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