This topic contains a solution. Click here to go to the answer

Author Question: If government cuts taxes ________. A) national saving goes up B) the equilibrium interest rate ... (Read 46 times)

karlynnae

  • Hero Member
  • *****
  • Posts: 599
If government cuts taxes ________.
 
  A) national saving goes up
  B) the equilibrium interest rate would decrease
  C) discretionary income goes up
  D) all of the above
  E) none of the above

Question 2

Under a fixed exchange rate system, if the real interest rate is at its lower bound and the central bank implements expansionary policy, real GDP will ________ and the output gap will ________.
 
  A) increase; increase
  B) decrease; decrease
  C) increase; decrease
  D) not change; not change



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lgoldst9

  • Sr. Member
  • ****
  • Posts: 372
Answer to Question 1

C

Answer to Question 2

D




karlynnae

  • Member
  • Posts: 599
Reply 2 on: Jun 30, 2018
Excellent


ecabral0

  • Member
  • Posts: 310
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

For a complete list of videos, visit our video library