Multiple Choice
Tax cuts
A) cause unemployment.
B) will surely make the government default on its debts.
C) may have no effect, if people take account of future taxes.
D) always stimulate economic activity.
E) cause the government to borrow less.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: What do we assume about households and
Q19: When there is high inflation<br>A)the nominal interest
Q20: In the 2008-09 recession, the government deficit<br>A)stayed
Q21: The two key business cycle events in
Q22: New Keynesian Theory<br>A)includes microeconomic foundations and does
Q24: The unemployment rate in 2018<br>A)was higher than
Q25: Since 1980, the real interest rate<br>A)has increased
Q26: Which of the following is a fundamental
Q27: Which of the following best describes the
Q28: What explains the trends in nominal interest