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Author Question: A rise in the tax rate on businesses leads to ________. A) a decline the desired level of capital ... (Read 70 times)

saraeharris

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on: Jun 30, 2018
A rise in the tax rate on businesses leads to ________.
 
  A) a decline the desired level of capital and an increase in investment
  B) a decline in the desired level of capital and a decrease in investment
  C) an increase in the desired level of capital and a decrease in investment
  D) an increase in the desired level of capital and an increase in investment

Question 2

Ceteris paribus, in a closed economy, if consumers become more pessimistic ________.
 
  A) autonomous consumption will fall
  B) investment will fall
  C) saving will increase
  D) all of the above
  E) none of the above


wergv

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

D


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