McqMate
| Q. |
What is the effect of an increase in taxes under fixed exchange rates and perfect asset substitutability in the short run? |
| A. | A decline in output and no change in interest rates. |
| B. | A decline in output and interest rates. |
| C. | An increase in output and no change in interest rates. |
| D. | An increase in output and interest rates. |
| Answer» C. An increase in output and no change in interest rates. | |
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