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If the Government Repeals an Investment Tax Credit and Increases

Question 11

Multiple Choice

If the government repeals an investment tax credit and increases income taxes,


A) real GDP rises,and the price level could rise,fall,or stay the same.
B) real GDP falls,and the price level could rise,fall,or stay the same.
C) real GDP and the price level rise.
D) real GDP and the price level fall.

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