Multiple Choice
Lower taxes on interest income:
A) permanently lower growth rates by encouraging saving rather than consuming.
B) increase growth rates by increasing consumption rates.
C) increase growth rates by increasing saving and thus investment.
D) lower growth rates by reducing government expenditures.
Correct Answer:
Verified
Correct Answer:
Verified
Q63: A tax cut that affects both aggregate
Q64: The inside lag is relatively shorter for
Q65: Shocks to _ require the Fed to
Q66: Shocks to aggregate demand _ require the
Q67: Following an adverse supply shock, people with
Q69: Which of the following policies is likely
Q70: The speed at which an economy returns
Q71: A tax increase that affects both aggregate
Q72: The time between when Congress decides to
Q73: Announced numerical inflation targets are advocated for