Interest rates fall and investment falls. Which of the following could explain these changes?
a. The government goes from a surplus to a deficit.
b. The government repeals an investment tax credit.
c. The government replaces a consumption tax with an income tax.
d. None of the above is correct.
b
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The sustainable upper limit of real GDP is a level of GDP that is
A) greater than potential GDP, but by how much greater is unknown and controversial. B) less than potential GDP, but by how much less is unknown and controversial. C) potential GDP. D) determined only by what is the full employment equilibrium in the labor market. E) None of the above answers is correct because there is no sustainable upper limit to real GDP because real GDP can always be increased.
The optimal subsidy for private giving to a public good increases as the number of people benefiting from the public good increases.
Answer the following statement true (T) or false (F)
At the time of the American Revolution, the Industrial Revolution first launched in
(a) France. (b) Germany. (c) England. (d) Spain.
Recall the Application about the effect of global warming on economic growth to answer the following question(s). According to this Application, a one degree Celsius rise in temperature:
A. increases poor countries' exports. B. decreases poor countries' exports. C. increases rich countries' exports. D. decreases all countries' exports.