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33) If the government increases taxes while holding expenditures constant A) the bond supply curve will shift to the left and the equilibrium interest rate
33) If the government increases taxes while holding expenditures constant
A) the bond supply curve will shift to the left and the equilibrium interest rate will fall.
B) the bond supply curve will shift to the right and the real interest rate will fall.
C) government borrowing will be increased.
D) the government's deficit will increase.
The correct answer is A Just want to know why it is A
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