Multiple Choice
If government spending drops and taxes rise:
A) both will lower equilibrium income,but the effects of government spending will be larger.
B) both will lower equilibrium income,but the effects of taxes will be larger.
C) both will raise equilibrium income,but the effects of government spending will be larger.
D) both will raise equilibrium income,but the effects of taxes will be larger.
Correct Answer:

Verified
Correct Answer:
Verified
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