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In the Monetarist Model,an Increase in Both Government Spending and Taxes

Question 25

Multiple Choice

In the monetarist model,an increase in both government spending and taxes would


A) lead to a large increase in interest rates.
B) increase income dollar for dollar with the increase in government spending.
C) have a much smaller impact on income than in the Keynesian model.
D) all of the above.

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