The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)
a. decrease in interest rates and an increase in the price of existing bonds.
b. increase in output, which induces more investment.
c. increase in interest rates and a decrease in the price of existing bonds.
d. decrease in interest rates and the price of existing bonds.
b
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What information is provided by the aggregate demand curve?
What will be an ideal response?
Describe the broad facts about what, how, and for whom goods and services are produced
What will be an ideal response?
Disposable personal income equals personal income
A) minus personal tax payments plus government transfer payments. B) plus government transfer payments. C) minus personal tax payments. D) minus government transfer payments plus personal tax payments.
Nondepository institutions:
A. do not serve as intermediaries. B. only transform assets. C. do not accept deposits. D. only serve as brokers.