A consumption-based theory of the determination of the real interest rate is based on the assumption that:
a. a rise in the real interest rate will increase current consumption
b. the real interest rate must adjust to make people willing to experience changing consumption levels over time.
c. the real interest rate is determined by the supply and demand for investment and is therefore unaffected by consumption decisions.
d. the real interest rate must be positive.
b
Economics
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In the U.S., the share of taxes ____ during the early years of George W. Bush's presidency and ____ since then
a. decreased; increased somewhat b. decreased; further decreased c. increased; further increased d. increased; decreased somewhat e. increased; remained constant
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Falling GDP leads to higher transfer payments and lower tax receipts.
Answer the following statement true (T) or false (F)
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