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Roar Roar
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6 years ago
Suppose a liquidity trap situation exists. Which of the following is most likely to occur if taxes are cut?
A) no change in output and no change in the interest rate
B) an increase in output and an increase in the interest rate
C) an increase in output and little change in the interest rate
D) an increase in output and a reduction in the interest rate
E) none of the above
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Macroeconomics

Macroeconomics


Edition: 6th
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legendvpnlegendvpn
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