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If Taxes Became More Progressive, We Would Expect That Whenever

Question 11

Multiple Choice

If taxes became more progressive, we would expect that whenever there was an economic fluctuation


A) there would be no difference in how automatic changes in taxes affected spending.
B) automatic changes in taxes would become less stabilizing.
C) discretionary fiscal policy would become more effective.
D) automatic changes in taxes would become more stabilizing.
E) discretionary fiscal policy would become less effective.

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