In the IS-LM Model When Taxation Increases, in Short-Run Equilibrium

question 13

Multiple Choice

In the IS-LM model when taxation increases, in short-run equilibrium, in the usual case, the interest rate and output .

• A)rises; falls
• B)rises; rises
• C)falls; rises
• D)falls; falls

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Millionaire Status

The state of having net assets or a net worth equal to or greater than one million units of a currency.

Modest Income

An income level that is considered to be average or slightly below average in a specific context or community.

Older Workers

Individuals in the workforce who are typically considered to be in the later stage of their working life, often characterized as being near or beyond the traditional retirement age.

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