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    Macroeconomics Study Set 39
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    Exam 3: National Income: Where It Comes From and Where It Goes
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    When Government Spending Increases and Taxes Are Increased by an Equal
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When Government Spending Increases and Taxes Are Increased by an Equal

Question 10

Question 10

Multiple Choice

When government spending increases and taxes are increased by an equal amount, interest rates:


A) increase.
B) remain the same.
C) decrease.
D) can vary wildly.

Correct Answer:

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