Assume an open, mixed economy. That is, foreign trade is part of
the economy, and the economy includes both a public (government)
and a private (consumers and businesses) sector. Given this,
aggregate demand is expressed as (C + I + G + X). Assume the MPC is
.7. Assume a stimulus package of $100 billion has been approved by
Congress and the money has been spent. In order to pay for those
expenditures, Congress also approved a $100 billion increase...