In the Keynesian-Cross Model, If Taxes Are Reduced by 100

question 41

Multiple Choice

In the Keynesian-cross model, if taxes are reduced by 100, then planned expenditures ______ for any given level of income.

• A) increase by 100
• B) increase by more than 100
• C) decrease by 100
• D) increase, but by less than 100

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Definitions:

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