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    Macroeconomics Study Set 8
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    Exam 5: Saving and Investment in the Open Economy
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    If There Is an Increase in Taxes on Business Firms
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If There Is an Increase in Taxes on Business Firms

Question 43

Question 43

Multiple Choice

If there is an increase in taxes on business firms in a small open economy,it causes the current account to ________ and saving ________.


A) fall;fall
B) rise;remain unchanged
C) fall;remain unchanged
D) rise;fall

Correct Answer:

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