If government cuts taxes ________
A) national saving goes up
B) the equilibrium interest rate would decrease
C) discretionary income goes up
D) all of the above
E) none of the above
C
You might also like to view...
Refer to Figure 9.2. A movement from point c to point b could be caused by a simultaneous ________ and ________
A) decrease in government spending; decrease in the price of oil B) increase in government spending; increase in the money supply C) increase in taxes; decrease in government spending D) decrease in taxes; increase in the price of oil
If a country has a comparative advantage in oil, then this means that the opportunity cost of producing oil is:
a. high. b. low. c. zero. d. infinite. e. equal to all other goods.
The price of a good is the most important determinant of the supply of that good
a. True b. False Indicate whether the statement is true or false
Assume that the market for soybeans is purely competitive. Currently, firms growing soybeans are experiencing economic profits. In the long run, we can expect this market's:
A. supply to decrease. B. supply to increase. C. demand to decrease. D. demand to increase.