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Which one is the correct answer? A cut in tax rates affects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and
Which one is the correct answer?
A cut in tax rates affects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and ________ the size of the multiplier effect.
A.increasing; decreasing
B. increasing; increasing
C. decreasing; decreasing
D. decreasing; increasing
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