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    Exam 11: Keynesianism: the Macroeconomics of Wage and Price Rigidity
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    In the Keynesian Model in the Long Run,an Increase in Taxes
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In the Keynesian Model in the Long Run,an Increase in Taxes

Question 84

Question 84

Multiple Choice

In the Keynesian model in the long run,an increase in taxes causes the price level to ________ and the real interest rate to ________.


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

Correct Answer:

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