Author Question: Suppose there is an increase in expected future taxes. This will cause which of the following to ... (Read 68 times)

V@ndy87 · **on:** Jun 30, 2018

Suppose there is an increase in expected future taxes. This will cause which of the following to occur?

A) the IS curve to shift left in the current period
B) the IS curve to shift right in the current period
C) the LM curve to shift up in the current period
D) the LM curve to shift down in the current period

Question 2

Ted spread is

A) the difference between the riskless rate and the rate at which banks are willing to lend to each other.
B) the difference between the riskless rate and the yield on corporate bonds.
C) the difference between the riskless rate and return on stocks.
D) none of the above