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Classical Economic Theories Such as Those Prior to the Great

Question 40

Multiple Choice

Classical economic theories such as those prior to the Great Depression supported balanced budgets and limited government involvement in the markets.Economists who favor this school of thought would support


A) tax cuts during economic downturns and the reduction of government spending
B) tax increases during economic downturns with increases in government spending
C) tax cuts during economic downturns
D) tax increases during periods of expansion

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