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    Exam 6: Macroeconomics Without Microeconomic Foundations
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    According to the IS-LM Model, in a Liquidity Trap an Increase
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According to the IS-LM Model, in a Liquidity Trap an Increase

Question 57

Question 57

Multiple Choice

According to the IS-LM model, in a liquidity trap an increase in taxation, T, causes the level of output, Y, to:


A) increase.
B) decline.
C) remain constant.
D) fluctuate.

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