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The Romer and Romer 2010 Paper in the American Economic

Question 67

Multiple Choice

The Romer and Romer 2010 paper in the American Economic Review found that tax changes that are made to promote long-run growth or to reduce an inherited budget deficit tend to result in:


A) A strong positive relationship between taxes and output GDP
B) A weak positive relationship between taxes and output GDP
C) An uncertain correlation between taxes and output GDP
D) A strong negative relationship between taxes and output GDP

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