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    Principles of Macroeconomics Study Set 12
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    As the Tax Rate Decreases, the Absolute Value of the Tax
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As the Tax Rate Decreases, the Absolute Value of the Tax

Question 60

Question 60

Multiple Choice

As the tax rate decreases, the absolute value of the tax multiplier


A) increases.
B) decreases.
C) does not change.
D) could either increase or decrease depending on the value of the MPC.

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