An Increase in the Effective Tax Rate on Capital Would

question 31

Multiple Choice

An increase in the effective tax rate on capital would cause the IS curve to ________ and the LM curve to ________.

• A)shift down and to the left; be unchanged
• B)shift down and to the left; shift up and to the left
• C)shift up and to the right; be unchanged
• D)shift up and to the right; shift up and to the left

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Definitions:

Oil Filters

Devices used in engines to remove contaminants from engine oil, transmission oil, lubricating oil, or hydraulic oil.

Milligrams of Residue

A measurement indicating the amount of substance remaining after a process or reaction, typically expressed in milligrams.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, with a certain degree of confidence.

Population Mean

The average of a set of values for the entire population.