A cut in tax rates effects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and ________ the size of the multiplier effect
A) increasing; increasing B) decreasing; decreasing
C) decreasing; increasing D) increasing; decreasing
A
You might also like to view...
Indicators of economic activity that move at the same time as the overall economy are called ________ indicators.
A. short-term B. real C. long-term D. coincident
What do economists mean when they say that capital can labor can be both complementary inputs and substitutes
What will be an ideal response?
When the financial institution is hedging interest-rate risk on its overall portfolio, then the hedge is a
A) macro hedge. B) micro hedge. C) cross hedge. D) futures hedge.
Best-response functions
a. can only be used to analyze games with continuous actions. b. are always downward sloping. c. always intersect at Nash equilibria. d. never intersect.