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A Decrease in Taxes Will Have a Larger Effect on Equilibrium

question 124

True/False

A decrease in taxes will have a larger effect on equilibrium GDP if the marginal propensity to consume is smaller.


Definitions:

Chromosomes

Long strands of DNA wound around proteins, located in the cell nucleus, carrying genetic information.

Genotype

Genetic makeup of an individual.

Phenotype

Characteristic observed in an individual due to the expression of his or her genotype.

Progeria

Severe retardation of growth after the first year accompanied by a senile appearance and death at an early age.

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