Multiple Choice
A tax cut shifts the aggregate demand curve the farthest if
A) the MPC is large and if the tax cut is permanent.
B) the MPC is large and if the tax cut is temporary.
C) the MPC is small and if the tax cut is permanent.
D) the MPC is small and if the tax cut is temporary.
Correct Answer:
Verified
Correct Answer:
Verified
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Q99: Figure 34-11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 34-11