MCQOPTIONS
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MCQOPTIONS
| 1. |
A tax increase shifts the IS curve to the |
| A. | left, causing output and interest rates to fall. |
| B. | left, causing output and interest rates to increase. |
| C. | right, causing output and interest rates to fall. |
| D. | right, causing output and interest rates to rise. |
| Answer» B. left, causing output and interest rates to increase. | |