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    Exam 17: Issues in Macroeconomic Theory and Policy
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    When the Crowding-Out Effect of a Decrease in Taxes Is
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When the Crowding-Out Effect of a Decrease in Taxes Is

Question 102

Question 102

Multiple Choice

When the crowding-out effect of a decrease in taxes is included in the analysis:


A) AD shifts left.
B) AD doesn't change.
C) AD shifts right.
D) any change in AD is indeterminate.

Correct Answer:

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