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Consider the following data for a closed economy:Y = $12 trillionC = $8 trillionG = $2 trillionSpublic = $−0.50 trillionT = $2 trillionNow suppose that government purchases increase from $2 trillion to $2.75 trillion but the values of Y and C are unchanged.What must happen to the values of S and I?A.S increases by $0.75 trillion and I drops by $0.75 trillion.B.S drops by $0.75 trillion and I increases by $0.75 trillion.C.S and I drop by $0.75 trillion.D.S and I increase by $0.75 trillion.
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