Consider a Macro Model with a Constant Price Level and Demand

question 101

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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