If both government spending and taxes increase by an equal amount at the same time, GDP will:
A) decrease.
B) remain the same.
C) increase.
D) none of the above are true, it is impossible to say.
Correct Answer:
Verified
Q51: Q52: If a economy's planned expenditures turn out Q53: If the marginal propensity to consume is Q54: A decrease in the price level will: Q55: Firms react to unplanned inventory reductions by: Q57: Assume that the consumption function is C Q58: The Tiny Tots Toy Company manufactures only Q59: The marginal propensity to import is the Q60: Recall Application 4, "The Locomotive Effect: Why Q61: When the consumption function is expressed as
A)
A)
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