A decreased government deficit created by a lump-sum tax increase will increase national saving if
A) the value of government bonds outstanding grows slower than the public's wealth.
B) it causes consumption to fall.
C) the government runs a primary surplus as a result.
D) the real interest rate is less than the growth rate of real GNP.
B
Economics
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Long-run average costs are the same as long-run total costs
a. True b. False
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According to purchasing-power parity, if the price of a basket of goods in the U.S. rose from $1,500 to $2,000 and the price of the same basket of goods rose from 600 units of some other country's currency to 1,000 units of that country's currency, then the
a. nominal exchange rate would appreciate. b. nominal exchange rate would depreciate. c. real exchange rate would appreciate. d. real exchange rate would depreciate.
Economics