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    Principles of Macroeconomics Study Set 12
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    Exam 12: Policy Effects and Cost Shocks in the Asad Model
  5. Question
    A Decrease in Net Taxes Will Result in Consumption Crowding
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A Decrease in Net Taxes Will Result in Consumption Crowding

Question 157

Question 157

True/False

A decrease in net taxes will result in consumption crowding out planned investment when the economy is on the steep part of the AS curve.

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