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    Macroeconomics
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    Exam 18: Supply Side Policies
  5. Question
    If Tax Rates Are Increased Then
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If Tax Rates Are Increased Then

Question 56

Question 56

Multiple Choice

If tax rates are increased then


A) the substitution effect is greater than the income effect.
B) the income effect is greater than the substitution effect.
C) there is only an income effect.
D) there is only a substitution effect.

Correct Answer:

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