Author Question: If government cuts taxes ________. A) national saving goes up B) the equilibrium interest rate ... (Read 28 times)

karlynnae · **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