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Answer to Question #332901 in Microeconomics for Unknown
Question #332901
The introduction of taxes to the Keynesian model...
O a. Increases investment spending at each positive level of income.
O b. Cause the slope of the consumption curve to become steeper.
O d. Causes the consumption function to shift parallel upwards.
O e. Causes the consumption function to shift parallel downwards.
O c. Flattens the consumption curve.
Expert's answer
e. Causes the consumption function to shift parallel downwards.
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