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Which term becomes part of autonomous expenditure in the government extension?

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Question

Which term becomes part of autonomous expenditure in the government extension?

Options

  • \[G+cT\]

  • \[Y-T\]

  • \[G-cT\]

  • \[C+I\]

MCQ
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Solution

The term \[G-cT\] becomes part of autonomous expenditure. It does not change the basic analysis.

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