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If Income Taxes Are Lowered, We Can Expect That the Income

Question 34

Multiple Choice

If income taxes are lowered, we can expect that the income velocity of money will


A) increase due to an increase in income and the interest rate
B) decrease due to an increase in saving and money supply
C) decrease since people will save more
D) remain fairly stable since both income and prices will increase
E) decrease since money supply will increase

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