Question

A tax cut shifts the aggregate demand curve the farthest if

Answer 1

Answer:

A tax cut shifts the aggregate demand curve the farthest if the MPC is small and if the tax cut is permanent. the MPC is large and if the tax cut is permanent

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Answer 2

Answer:

A tax cut shifts the aggregate demand curve the farthest if... ... the MPC is small and if the tax cut is permanent. the MPC is large and if the tax cut is permanent..

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