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A $50 Billion Increase in Taxes on Households Has A(n)

Question 72

Multiple Choice

A $50 billion increase in taxes on households has a(n)


A) identical impact on aggregate demand as a $50 billion decrease in government expenditures
B) identical impact on aggregate demand as a $50 billion increase in government expenditures
C) stronger impact on aggregate demand than a $50 billion decrease in government expenditures
D) weaker impact on aggregate demand than a $50 billion decrease in government expenditures

Correct Answer:

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