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    Macroeconomics Study Set 27
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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
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    Government Tax Revenue Rises and Falls with the Business Cycle
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Government Tax Revenue Rises and Falls with the Business Cycle

Question 46

Question 46

Multiple Choice

Government tax revenue rises and falls with the business cycle as:


A) the multiplier effect of taxes and government transfers.
B) a discretionary fiscal policy.
C) the multiplier effect of government purchases.
D) an automatic stabilizer.

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