In a model with income taxes, if net exports decrease, which of the following is FALSE?
A) the budget deficit will not be affected
B) the budget deficit will increase
C) disposable income will decrease
D) saving will decrease
E) income will decrease by more than net exports
Correct Answer:
Verified
Q38: A decrease in the income tax rate
Q39: Assume an economy with no foreign sector,
Q40: If the savings function is of the
Q41: Assume a model where marginal propensity to
Q42: Assume a model with income taxes in
Q44: Assume the savings function is defined as
Q45: In a model with income taxes, assume
Q46: The full-employment budget surplus increases if
A)government transfer
Q47: A decrease in the income tax rate
Q48: In 2009, the U.S.federal budget deficit was
A)about
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