In the short run if the tax rate on asset income,
r , rises, then in the market clearing model:
A) household current consumption will fall compared to future consumption.
B) current investment will fall.
C) the after tax real interest rate rises.
D) all of the above.
Correct Answer:
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Q19: The Eurozone government gains most revenue from:
A)property
Q20: If the marginal tax rate on income,
Q21: An increase in government purchases financed by
Q22: The after tax real interest rate is:
A)r/
Q23: With an increase in government purchases financed
Q25: If the real marginal tax rate,
Q26: In the long run an increase in
Q27: If there is a decrease in government
Q28: If the real marginal tax rate,
Q29: In the long run an increase in
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