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The Presence of Income Taxes and Imports Makes the Slope

Question 66

Multiple Choice

The presence of income taxes and imports makes the slope of the aggregate expenditure curve


A) flatter than it would be without income taxes and imports.
B) steeper than it would be without income taxes and imports.
C) the same as it would be without income taxes and imports.
D) probably different to what it would be without income taxes and imports, but income taxes make it steeper while imports make it flatter.

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