MCQOPTIONS
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MCQOPTIONS
| 1. |
In the long-run ISLM model, the long-run effect of a tax cut is to |
| A. | increase real output and the interest rate. |
| B. | increase real output and not affect the interest rate. |
| C. | not affect real output and increase the interest rate. |
| D. | not affect real output and reduce the interest rate. |
| Answer» D. not affect real output and reduce the interest rate. | |