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If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, we can conclude that the

If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, we can conclude that the tax: Multiple Choice increases the MPC and therefore increases the size of the multiplier. enhances the economy's built-in stability. neither increases nor decreases built-in stability. reduces the economy's built-in stability

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