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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    A Tax Increase Has
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A Tax Increase Has

Question 112

Question 112

Multiple Choice

A tax increase has


A) a multiplier effect but not a crowding out effect
B) a crowding out effect but not a multiplier effect
C) both a crowding out and multiplier effect
D) neither a multiplier or crowding out effect

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