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    International Economics Study Set 9
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    Exam 18: Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run
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    If Taxes Fall and Foreign Income Falls, What Will Happen
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If Taxes Fall and Foreign Income Falls, What Will Happen

Question 149

Question 149

Multiple Choice

If taxes fall and foreign income falls, what will happen to output, ceteris paribus?


A) It will rise.
B) It will stay the same.
C) It will fall.
D) It is uncertain what will happen.

Correct Answer:

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