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    Exam 11: Aggregate Demand I: Building the Is-Lm Model
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    In the Keynesian-Cross Model, If Taxes Are Reduced by 250
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In the Keynesian-Cross Model, If Taxes Are Reduced by 250

Question 71

Question 71

Multiple Choice

In the Keynesian-cross model, if taxes are reduced by 250, then the equilibrium level of income:


A) increases by 250.
B) increases by more than 250.
C) decreases by 250.
D) increases, but by less than 250.

Correct Answer:

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