

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