In a model with income taxes, an increase in autonomous imports will

Name: In a model with income taxes, an increase in autonomous imports will
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An increase in autonomous imports means an increase in spending on imports, which leads to a decrease in net exports. Since net exports are a component of aggregate demand, this means that aggregate demand will decrease. This decrease in aggregate demand will lead to a decrease in tax revenue, increasing the budget deficit.

In a Model with Income Taxes, an Increase in Autonomous