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    Exam 12: The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime
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    According to the IS-LM Model, If Congress Raises Taxes but the Fed
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According to the IS-LM Model, If Congress Raises Taxes but the Fed

Question 1

Question 1

Multiple Choice

According to the IS-LM model, if Congress raises taxes but the Fed wants to hold income constant, then the Fed must the money supply.


A) increase.
B) decrease.

Correct Answer:

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