A rise in the tax rate on businesses leads to ________. A) a ...

[saraeharris]

A rise in the tax rate on businesses leads to ________.
 
  A) a decline the desired level of capital and an increase in investment
  B) a decline in the desired level of capital and a decrease in investment
  C) an increase in the desired level of capital and a decrease in investment
  D) an increase in the desired level of capital and an increase in investment

Question 2

Ceteris paribus, in a closed economy, if consumers become more pessimistic ________.
 
  A) autonomous consumption will fall
  B) investment will fall
  C) saving will increase
  D) all of the above
  E) none of the above

[wergv]

Answer to Question 1

B

Answer to Question 2

D