If the government holds spending constant while decreasing taxes,we expect
A) an increase in investment spending by businesses too,as they anticipate future economic growth.
B) a decrease in saving as consumers follow suit and also increase borrowing.
C) investment spending by businesses to increase.
D) interest rates to rise.
Correct Answer:
Verified
Q43: The tendency for expansionary fiscal policy to
Q44: When the economy is operating on the
Q45: Expansionary fiscal policy falls short of its
Q46: If other factors are held constant and
Q47: If the economy is experiencing an inflationary
Q49: If the government increases spending but doesn't
Q50: If the economy is experiencing a recessionary
Q51: If the economy is at an output
Q52: "Expansionary fiscal policy is always 100 percent
Q53: To reduce an expansionary gap,the government could
A)decrease
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