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If Government Purchases Are Constant, Then an Increase in the Marginal

Question 9

Multiple Choice

If government purchases are constant, then an increase in the marginal income tax rate, If government purchases are constant, then an increase in the marginal income tax rate,   <sub>w</sub>, leads to: A) a positive income effect. B) a negative income effect. C) no income effect. D) a marginal income effect. w, leads to:


A) a positive income effect.
B) a negative income effect.
C) no income effect.
D) a marginal income effect.

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