A decrease in the effective tax rate on capital would cause the IS curve to
A) shift up and to the right.
B) shift down and to the left.
C) remain unchanged.
D) remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.
A
You might also like to view...
Define marginal benefit. Explain how it is measured and why the data in the table does not enable you to calculate Brazil's marginal benefit from food
What will be an ideal response?
An area that is rising significantly in cost is:
a. Health care b. Home appliances and electronics c. College tuition d. both a and c are correct
Other things the same, the aggregate quantity of goods demanded in the U.S. increases if
a. real wealth rises. b. the interest rate rises. c. the dollar appreciates. d. All of the above are correct.
With respect to present bias in the case of saving for retirement, the cost ________ and the benefit ________.
A. occurs in the past; occurs in the present B. occurs in the present; occurs in the future C. occurs in the present and in the future; does not occur D. occurs in the future; occurs in the present