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Suppose the federal government reduces taxes on the profits earned from investment in physical capital. According to our model, this policy will eventually result in:

Suppose the federal government reduces taxes on the profits earned from investment in physical capital. According to our model, this policy will eventually result in: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a an increase in real GDP and an increase in prices b an increase in real GDP and a decrease in prices c an increase in real GDP and an ambiguous effect on prices d a decrease in consumption and no change in prices

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