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Please,Step by step answer and explanation Which of the following statements correctly describes the short-turn response towards a decrease in lump-sum taxes, assuming that households

Please,Step by step answer and explanation

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Which of the following statements correctly describes the short-turn response towards a decrease in lump-sum taxes, assuming that households are sophisticated and do expect the future tax increase. O The IS curve stays unchanged The IS curve shifts to the right The IS curve shifts to the left None of the above QUESTION 18 Which of the following statements correctly describes the short-term response towards an increase in the risk of bonds market? The LM curve stays unchanged O The LM curve shifts to the right The LM curve shifts to the left O None of the above QUESTION 19 Which of the following statements correctly describes the short-term response towards an increase in current output? The LM curve stays unchanged The LM curve shifts to the right The LM curve shifts to the left None of the above QUESTION 20 Consider the following economy with: Y = 220 N - 2N^2, MPN = 220-4N, NS = 8.75 w+0.2T, where T =50 is lump-sum tax. The government maintains a balanced budget such that T=G for all economies. C^d = 0.4 Y - 1000r - 0.4 T, I^d = 3613.125 - 500r, M^d=P*(0.4 Y - 2000 1), M=9275, expected inflation rate =0.04. What is the market clearing real wage? O less than or equal to 5 greater than 5 and less than or equal to 6 greater than 6 and less than or equal to 7 greater than 7 and less than or equal to 8 greater than 8

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