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Which of the Following Will NOT Happen If the Income

Question 29

Multiple Choice

Which of the following will NOT happen if the income tax rate (t) is increased?


A) the expenditure multiplier and consumption will both decrease
B) disposable income, saving, and consumption will all decrease
C) consumption and income both will decrease, but saving will increase
D) the full-employment budget surplus will increase
E) autonomous spending will stay the same but national income will decrease

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