In the long-run ISLM model and with everything else held constant, the long-run effect of a tax cut is to ________ real output and ________ the interest rate
A) increase; increase
B) increase; not change
C) not change; increase
D) not change; decrease
C
Economics
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The demand for money ________ when the ________
A) increases; nominal interest rate increases B) decreases; price level increases C) increases; supply of money decreases D) remains constant; price level increases E) increases; price level increases
Economics
If the economy is producing at point a on its production possibility frontier, then
A) all of the country's workers are employed. B) all of the country's workers are specialized in one product. C) all of the country's capital is used for one product. D) all of its capital is used, but not efficiently. E) all of the country's exports are produced in equal amounts.
Economics