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There Are Two Kinds of Changes in Net Taxes: First,net

Question 40

Multiple Choice

There are two kinds of changes in net taxes: First,net taxes can change if the government changes its tax or transfer policies.Second,net taxes change automatically as income rises and falls,without any change in policy.The _________ kind of change sets off the multiplier process,while the _________ kind of change occurs during the multiplier process.


A) first;first.
B) first;second.
C) second;first.
D) second;second.
E) None of the above.

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