The expected effect of the Bush tax cuts would be a(n)

Name: The expected effect of the Bush tax cuts would be a(n)
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Question

Quizplus · Accepted Answer

The Bush tax cuts were aimed at reducing taxes, which would increase disposable income and consumption, leading to an increase in imports and a higher current account deficit. This would put downward pressure on the exchange rate, but it would likely have a neutral effect on the real interest rate. Therefore, choice C is the best answer.

The Expected Effect of the Bush Tax Cuts Would Be