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Author Question: The supply-side economists expect that a cut in the marginal income tax rate, with lost revenues ... (Read 51 times)

Jkov05

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  • Posts: 556
on: Jun 30, 2018
The supply-side economists expect that a cut in the marginal income tax rate, with lost revenues made up by a cut in government spending, would
 
  a. increase output.
  b. decrease output.
  c. leave output unchanged.
  d. affect output but the direction of the effect is uncertain.

Question 2

One explanation for the fall in the value of the U.S. dollar since 2001is
 
  a. the mix of an tight fiscal/tight monetary policy over the period.
  b. the relative weakness of the U.S. economy over the period.
  c. a higher degree of accommodation of supply shocks in the United States relative to our trading partners.
  d. the disintegration of the Bretton Woods system during these years.


Benayers

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

B


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