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    Exam 14: Fiscal Policy
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    An Increase in Government Purchases Combined with an Increase in Taxes
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An Increase in Government Purchases Combined with an Increase in Taxes

Question 86

Question 86

Multiple Choice

An increase in government purchases combined with an increase in taxes would:


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

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