Suppose the government share of GDP is 20 percent and the consumption, investment, and net export shares of GDP are 60, 15, and 5 percent, respectively. If the federal government introduces a national sales tax (a federal tax on consumption) , then we would expect
A) the government share of GDP to increase.
B) the interest rate to decrease.
C) the interest rate to increase.
D) the government share of GDP to decrease.
E) the net consumption share of GDP to increase.
Correct Answer:
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Q95: Suppose the government share of GDP is
Q96: If the nongovernment share of GDP shifts
Q97: The sum of the consumption, investment, and
Q98: All else held constant, interest rates will
Q99: The nongovernment share of GDP equals
A)saving as
Q101: The government purchase share of GDP has
Q102: If the nongovernment share of GDP shifts
Q103: The government purchase share of GDP is
Q104: A decrease in the share of government
Q105: In the long run, the real interest
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