The standard view in economics is that tax cuts without ________ will ________ the budget deficit resulting in ________.
A) spending cuts;decrease;crowding out investment
B) increasing spending;increase;crowding out investment
C) increasing spending;decrease;unemployment
D) spending cuts;increase;crowding out investment
E) spending cuts;decrease;unemployment
Correct Answer:
Verified
Q62: If a tax cut increases aggregate demand
Q68: If the income tax rate is 20
Q71: If the nominal interest rate is 10
Q75: If fiscal stimulus creates a large budget
Q137: When taxes are cut,aggregate demand _ and
Q139: When the government cuts the income tax
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