Multiple Choice
Let the government increase lump-sum taxes.The aggregate demand curve will
A) shift leftward and the IS curve will shift leftward.
B) shift rightward and the IS curve will shift rightward.
C) remain unaffected but the IS curve will shift leftward.
D) become positively sloped but the IS curve will remain negatively sloped.
Correct Answer:
Verified
Correct Answer:
Verified
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