Multiple Choice
If federal taxes are cut by $10 billion,aggregate demand
A) increases by $10 billion.
B) increases by $10 billion multiplied by the government expenditure multiplier.
C) increases by $10 billion multiplied by the tax multiplier.
D) decreases by $10 billion.
E) decreases by $10 billion multiplied by the tax multiplier.
Correct Answer:
Verified
Correct Answer:
Verified
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