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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    When Taxes Increase, Interest Rates
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When Taxes Increase, Interest Rates

Question 41

Question 41

Multiple Choice

When taxes increase, interest rates


A) decrease, making the change in aggregate demand larger.
B) decrease, making the change in aggregate demand smaller.
C) increase, making the change in aggregate demand larger.
D) increase, making the change in aggregate demand smaller.

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