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Suppose Y = 400 and the Government's Net Tax Rate

Question 18

Multiple Choice

Suppose Y = 400 and the government's net tax rate is 10%.If we are told that the government has a budget surplus,then government purchases must be


A) greater than 30.
B) less than 30.
C) greater than 40.
D) less than 40.
E) Not enough information to know.

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