If the Government Decreases Taxes,which of the Following Would Occur

question 116

Multiple Choice

If the government decreases taxes,which of the following would occur?

• A) An increase in GDP,an increase in the price level,an increase in money demand,and an increase in the interest rate
• B) An increase in GDP,a decrease in the price level,an increase in money demand,and a decrease in the interest rate
• C) A decrease in GDP,a decrease in the price level,a decrease in money demand,and a decrease in the interest rate
• D) A decrease in GDP,a decrease in the price level,an increase in money demand,and an increase in the interest rate
• E) An increase in GDP,an increase in the price level,a decrease in money demand,and a decrease in the interest rate.

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Definitions:

Aluminum Foil

A thin sheet of aluminum metal that is used for cooking, packaging, insulating, and other applications due to its lightweight and non-corrosive properties.

Element

A substance that cannot be broken down into simpler substances by chemical means, consisting of atoms with the same number of protons.

Chemically Bonded

The state of being joined or connected through chemical bonds, which involve the sharing or exchange of electrons between atoms.

Homogeneous

A descriptor for a mixture or substance that has the same uniform appearance and composition throughout.