Author Question: If consumers save the entire amount of the increase in their disposable income due to a tax cut, the ... (Read 123 times)

chandani · **on:** Jun 30, 2018

If consumers save the entire amount of the increase in their disposable income due to a tax cut, the ________.

A) tax cut will lead to a decrease in GDP
B) tax cut will lead to an increase in GDP
C) tax cut will lead to an increase in current account deficit
D) tax cut will have no effect on GDP

Question 2

In the case of banks, living wills spell out:

A) how a bank would sell its assets and pay of its creditors in the event of shutdown.
B) the amount of bank resources to be retained as stockholders' equity.
C) the long term business development plans of systematically important financial institutions.
D) the balance sheet of systemically important financial institutions.