Multiple Choice
Consider a macro model with a constant price level and demand-determined output.A rise in the net tax rate ________ the simple multiplier and ________ equilibrium national income.
A) lowers; has no effect on
B) lowers; lowers
C) lowers; raises
D) raises; raises
E) raises; has no effect on
Correct Answer:
Verified
Correct Answer:
Verified
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