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Author Question: If government cuts taxes ________. A) national saving goes up B) the equilibrium interest rate ... (Read 107 times)

karlynnae

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on: Jun 30, 2018
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


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lgoldst9

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

C

Answer to Question 2

D


karlynnae

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

nyrave

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Reply 3 on: Yesterday
Excellent

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