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Unformatted text preview: effects of a decrease in lump-sum taxes on real income, the real interest rate and the general price level. c) In the long run, how will the decrease in lump-sum taxes affect consumption (C d ) and investment (I d )? Explain....
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This note was uploaded on 07/12/2010 for the course ECON 202 taught by Professor Angelatrimarchi during the Spring '10 term at Waterloo.
- Spring '10