Using the Keynesian Model,the Effect of a Decrease in the Effective

question 43

Multiple Choice

Using the Keynesian model,the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run.

• A)a decrease; a decrease
• B)a decrease; no change
• C)an increase; an increase
• D)no change; a decrease

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Definitions:

Nonverbal Channels

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Vocabulary

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Health professionals who specialize in advising on diet, nutrition, and the impact of food on health and wellbeing.

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