Consider a Macro Model with a Constant Price Level and Demand-Determined

question 110

Multiple Choice

Consider a macro model with a constant price level and demand-determined output.A rise in the net tax rate ________ the simple multiplier and ________ equilibrium national income.

• A)lowers; has no effect on
• B)lowers; lowers
• C)lowers; raises
• D)raises; raises
• E)raises; has no effect on

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