In the long run,
A) the government's tax policies do not affect the rate of investment spending.
B) lower tax rates will have no effect on the average standard of living.
C) lower tax rates will lead to faster growth in the average standard of living.
D) higher tax rates will lead to slower growth in the average standard of living.
E) the debt and the deficit will converge to zero.
Correct Answer:
Verified
Q46: Federal revenue as a percentage of GDP
Q47: In the long run,
A) fiscal policy has
Q48: An economic expansion causes
A) the federal budget
Q49: Which of the following cases represent the
Q50: The government can safely take on more
Q52: The federal government
A) runs a deficit when
Q53: The national debt
A) will be zero when
Q54: The federal government
A) runs a deficit when
Q55: When positive spending shocks occur,transfer payments automatically
Q56: When negative spending shocks occur,transfer payments automatically
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