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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    A Tax Cut Shifts Aggregate Demand
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A Tax Cut Shifts Aggregate Demand

Question 46

Question 46

Multiple Choice

A tax cut shifts aggregate demand


A) by more than the amount of the tax cut.
B) by the same amount as the tax cut.
C) by less than the tax cut.
D) None of the above is necessarily correct.

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