When drawn against the real interest rate, the output demand curve unambiguously shifts to the right if either or both of the following occur.
A) a decrease in current taxes and a decrease in future taxes
B) an increase in current taxes and a reduction in interest rates
C) an increase in current taxes and an increase in future taxes
D) a decrease in current taxes and an increase in future taxes
E) an increase in current taxes and a decrease in future taxes
Correct Answer:
Verified
Q54: Next period's capital is equal to current-period
Q55: The output demand curve shows the
A)positive relationship
Q56: The assumption that current-period consumption demand is
Q57: The equilibrium effects of a temporary increase
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