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    Exam 10: Fiscal Policy
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    What Effect Would an Increase in Government Purchases,combined with an Increase
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What Effect Would an Increase in Government Purchases,combined with an Increase

Question 116

Question 116

Multiple Choice

What effect would an increase in government purchases,combined with an increase in taxes,have on AD?


A) It would leave AD unchanged.
B) It would decrease AD.
C) It would have an indeterminate effect on AD.
D) It would increase AD.

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