Multiple Choice
According to the traditional view of government debt (as in the IS-LM model) , if taxes are cut without cutting government spending, then in the short run interest rates will ______ and investment will ______.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
Correct Answer:
Verified
Correct Answer:
Verified
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Q13: Assume that the nominal interest rate is
Q14: Historically, the primary cause of increases in
Q15: If government debt is not changing, then:<br>A)
Q16: The logic of Ricardian equivalence implies that:<br>A)
Q18: Each of the following changes would allow
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