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Using the Keynesian Model,the Effect of a Decrease in the Effective

Question 43

Multiple Choice

Using the Keynesian model,the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run.


A) a decrease; a decrease
B) a decrease; no change
C) an increase; an increase
D) no change; a decrease

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