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    Exam 16: The Influence of Fiscal Policy on Aggregate Demand
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    When the Government Reduces Taxes, All Other Things Being Equal
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When the Government Reduces Taxes, All Other Things Being Equal

Question 48

Question 48

Multiple Choice

When the government reduces taxes, all other things being equal, what will decrease?


A) consumption
B) take-home pay
C) household saving
D) government surplus

Correct Answer:

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