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Economy reaction to this the interest rate

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Reference no: EM131092765

Suppose there is a tax increase. Because during the economy's reaction to this the interest rate becomes

a) higher, the decrease in GDP is larger than if the interest rate had not changed

b) higher, the decrease in GDP is smaller than if the interest rate had not changed

c) lower, the decrease in GDP is larger than if the interest rate had not changed

d) lower, the decrease in GDP is smaller than if the interest rate had not changed

Reference no: EM131092765

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