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Refer to the Above Data

Question 54

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Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, we can conclude that the tax: A) enhances the economy's built-in stability. B) reduces the economy's built-in stability. C) neither increases nor decreases built-in stability. D) increases the MPC and therefore increases the size of the multiplier. Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, we can conclude that the tax:


A) enhances the economy's built-in stability.
B) reduces the economy's built-in stability.
C) neither increases nor decreases built-in stability.
D) increases the MPC and therefore increases the size of the multiplier.

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