Question: GNP PROBLEM Assume: C = $300B TR1 = 15% I = $300B G = $250B Yf = $2,500B X = $100B M = -0.1Yd What

GNP PROBLEM

Assume: C = $300B TR1 = 15%

I = $300B

G = $250B Yf = $2,500B

X = $100B

M = -0.1Yd

What is the tax rate to cover the GNP gap based on classical/Republican response?

When I calculate, I get a TR2 that is negative (the number comes to -5.2). Does that mean the new tax rate should be 0%

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