If the time path of government purchases does not change and the government cuts lump sum taxes, then:
A)real GDP does not change.
B)real consumption increases.
C)real gross investment falls.
D)all of the above.

Question

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The Answer of If the time path of government purchases does not change and the government cuts lump sum taxes, then:
A)real GDP does not change.
B)real consumption increases.
C)real gross investment falls.
D)all of the above.

If the Time Path of Government Purchases Does Not Change