Consider a Model with Demand-Determined Output and a Constant Price

question 71

Multiple Choice

Consider a model with demand-determined output and a constant price level.A decrease in the net tax rate causes ________ in autonomous spending and a ________ in the simple multiplier.

• A)a rise; rise
• B)a rise; fall
• C)no change; rise
• D)no change; fall
• E)a fall; fall

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