An increase in taxes causes equilibrium output to _____ and the equilibrium interest rate to
A) rise, rise.
B) rise, fall.
C) fall, rise.
D) fall, fall.
Correct Answer:
Verified
Q17: An increase in autonomous consumption has a
Q18: If output is above the natural rate,
Q19: A decrease in the real money supply
Q20: A decrease in output shifts the LM
Q21: If the LM curve shifts to the
Q23: An increase in autonomous consumption shifts AD
Q24: When the Fed increases the money supply,
Q25: A financial panic would cause _ to
Q26: Crowding out implies that an increase in
Q27: The AD slopes down due to the
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