For this question,assume that the Fed is expected to respond to any event by keeping output constant (i.e.,equal to its initial level).An unexpected increase in taxes will cause
A)stock prices to fall.
B)stock prices to rise.
C)no change in stock prices.
D)an ambiguous effect on stock prices.

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The Answer of For this question,assume that the Fed is expected to respond to any event by keeping output constant (i.e.,equal to its initial level).An unexpected increase in taxes will cause
A)stock prices to fall.
B)stock prices to rise.
C)no change in stock prices.
D)an ambiguous effect on stock prices.

For This Question,assume That the Fed Is Expected to Respond