Suppose the federal government increases the unemployment benefits financed by higher income taxes. In this case, which of the following is likely to occur?
a. An increase in the equilibrium real GDP
b. A redistribution of disposable income from the employed to the unemployed
c. An increase in the interest rate
d. An increase in the discount rate charged by the Central Bank
e. An increase in the income of the rich and a decrease in the income of the poor
b
Economics
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What will be an ideal response?
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