Suppose the federal government increases the unemployment benefits financed by higher income taxes. In this case, which of the following is likely to occur?
A) The equilibrium real GDP will increase.
B) Higher tax rates will reduce the opportunity cost of leisure.
C) The interest rate will increase.
D) The discount rate charged by the Central Bank will increase.
E) The income of the rich will increase and the income of the poor will decrease.
Correct Answer:
Verified
Q102: Supply-side economics emphasized government policies to:
A)restrict aggregate
Q106: Fiscal policy under the Reagan administration was
Q114: If people base their spending decisions more
Q117: People will be likely to spend a
Q121: Suppose the government increases unemployment benefits, which
Q123: Which of the following is not a
Q124: Permanent income _
A) is the income a
Q127: People will be likely to spend a
Q128: Fiscal policy under the Reagan administration resulted
Q130: After a substantial tax rebate program in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents