In an Open Economy with Government and Demand-Determined Output,an Increase

question 31

Multiple Choice

In an open economy with government and demand-determined output,an increase in the equilibrium level of national income could be caused by

• A)an increase in taxes at all levels of income.
• B)an increase in the desired level of imports at all levels of income.
• C)a decrease in desired consumption at all levels of income.
• D)a decrease in the desired level of saving at all levels of income.
• E)a decrease in government purchases.

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