When a government reduces its deficits by increasing taxes,in the short run,
A)output returns to potential.
B)output increases.
C)interest rate is higher.
D)IS curve shifts inward to the left.

Question

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The Answer of When a government reduces its deficits by increasing taxes,in the short run,
A)output returns to potential.
B)output increases.
C)interest rate is higher.
D)IS curve shifts inward to the left.

When a Government Reduces Its Deficits by Increasing Taxes,in the Short