If government cuts taxes ________. A) national saving goes up ...

[karlynnae]

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

[lgoldst9]

Answer to Question 1

C

Answer to Question 2

D

[karlynnae]

Thanks for the timely response, appreciate it

[samiel-sayed]

Gracias!