classical economists current, interest, increase, financing, government

TheMBAGlover

according to new classical economists, is financing a reduction in current taxes by government borrowing likely to result in an increase in:


a. no (aggregate demand ) no ( the real interest rate)
b. no ( aggregate demand ) yes ( the real interest rate)
c. yes ( aggregate demand ) no ( the real interest rate)
d. yes ( aggregate demand ) yes ( the real interest rate)



ANSWER














a.

page 348 in economics book in cfai books says that minimizing effects of taxes causes the economy to expand.... so it should be c or d.



Edited 3 time(s). Last edit at Sunday, May 23, 2010 at 02:21PM by homie.