A deficit-financed tax cut will ____ national savings and _____ private consumption.
a. have no effect on; increase
b. increase; decrease
c. decrease; decrease
d. decrease; increase
Question 2
With respect to the demand side, the Keynesian model
a. includes monetary factors.
b. provides a role for government spending and taxes.
c. includes autonomous investment.
d. All of the above
e. None of the above
