The president wishes not only to increase spending for education by $4 billion but also to maintain a balanced budget.Therefore, taxes will also be increased by $4 billion.What will happen to GDP?
A) It will increase.
B) It will remain the same.
C) It will decrease.
D) It's impossible to know without the multiplier.
Correct Answer:
Verified
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Q93: Changes in government spending
A)are an indirect component
Q95: An increase in taxes will cause the
Q96: A change in a fixed tax will
Q97: Congress is debating whether to raise taxes
Q98: Which of the following is one of
Q99: Fiscal policy may be mistimed due to
A)the
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