If the government were to simultaneously cut the personal income tax and the corporate profits tax, the equilibrium interest rate
A) would fall.
B) would rise.
C) would be unaffected.
D) might either rise or fall.
D
You might also like to view...
The law of diminishing marginal utility means that: a. marginal utility is maximized when consumers get the same amount of total utility from every good they consume. b. total utility is maximized when consumers get the same amount of marginal utility from the last unit of every good they consume. c. beyond some point, added units of a product provide lower and lower amounts of marginal
utility. d. a consumer would get less utility from the last unit of a good consumed when that good costs $3 than when it costs $1.
The quantity supplied of a good is the amount that a. buyers are willing and able to purchase
b. sellers are able to produce. c. buyers and sellers agree will be brought to market. d. sellers are willing and able to sell.