In the long run,
a. an increase in the federal budget deficit can lower the interest rate and investment spending.
b. an increase in the federal budget deficit can raise the interest rate and investment spending.
c. a decrease in the federal budget deficit can lower the interest rate and raise investment spending.
d. a decrease in the federal budget deficit can raise the interest rate and lower investment spending.
e. a decrease in the federal budget deficit can lower the interest rate and lower investment spending.
C
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The type of tax receipts that has shown the slowest growth since World War II has been
A) personal taxes. B) contributions for social insurance. C) taxes on production and imports. D) corporate taxes.
Single-owner proprietorships often unintentionally exaggerate their profits because they
A) forget their explicit losses. B) look at after-tax instead of pre-tax costs. C) pay their bills late and therefore incur large interest charges. D) neglect to consider the opportunity cost of the owner's labor.