A reduction in government taxes causes:
a. The monetary base to either rise or fall, depending on the state of the economy.
b. No change in the monetary base.
c. The monetary base to fall.
d. The monetary base to rise.
.B
Economics
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If at a given real interest rate desired national saving is $60 billion, domestic investment is $30 billion, and net capital outflow is $20 billion, then at that real interest rate in the loanable funds market there is a
a. surplus. The real interest rate will rise. b. surplus. The real interest rate will fall. c. shortage. The real interest rate will rise. d. shortage. The real interest rate will fall.
Economics
To eliminate an inflationary gap, the aggregate demand curve should
A. shift outward. B. become vertical. C. become horizontal. D. shift inward.
Economics