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    Macroeconomics Study Set 39
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    Exam 12: Aggregate Demand Ii: Applying the Is-Lm Model
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    A Given Increase in Taxes Shifts the IS Curve More
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A Given Increase in Taxes Shifts the IS Curve More

Question 99

Question 99

Multiple Choice

A given increase in taxes shifts the IS curve more to the left the:


A) larger the marginal propensity to consume.
B) smaller the marginal propensity to consume.
C) larger the government spending.
D) smaller the government spending.

Correct Answer:

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