He spending of the households, businesses and the government

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He spending of the households, businesses and the government in the Banana Republic is expressed as:

C = 100 + .80Y, I = 100, and G = 300.

The Banana Republic's government decides on taxing the households at the amount of T = 200. All other assumptions are the same as above.

The tax will reduce the GDP of the Republic by ______

a.2000

b.180

c.800

d.200

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