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In the 1930s,Presidents Hoover and Roosevelt Raised Taxes in Order

Question 164

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In the 1930s,Presidents Hoover and Roosevelt raised taxes in order to balance the budget.Also in 1930,Congress passed the Smoot-Hawley Tariff Act,which imposed taxes on imported goods.Using an aggregate supply and demand model,explain the impact of these policies.

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Taxes decrease aggregate demand,which ge...

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