Explain how a consumption tax could lead to a decrease in real interest rates
A tax on consumption would discourage individuals from making purchases. As a result, these individuals would be saving more. That would lead to an increase in the supply of loanable funds which would lead to a decrease in real interest rates.
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From 1981 to 2011, the unemployment rate in the United States
A) was always lower than the unemployment rate in Japan. B) almost always equaled the unemployment rate in Canada. C) generally rose while the unemployment rate in the Eurozone fell. D) was generally lower than the unemployment rate in the Eurozone. E) was usually higher than the unemployment rate in Canada.
Which of the following is not a characteristic of oligopoly?
A) the ability to influence price B) a small number of firms C) interdependent firms D) low barriers to entry