Indicate the effect of each of the following policies on the variables: Y, C, S, r, I, Ms, and Md.
(a) The government reduces the personal income tax rates.
(b) Firms become more pessimistic about future sales.

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The Answer of Indicate the effect of each of the following policies on the variables: Y, C, S, r, I, Ms, and Md.
(a) The government reduces the personal income tax rates.
(b) Firms become more pessimistic about future sales.

Indicate the Effect of Each of the Following Policies on the Variables