Question
Which one is the correct answer? A cut in tax rates affects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and
Which one is the correct answer?
A cut in tax rates affects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and ________ the size of the multiplier effect.
A.increasing; decreasing
B. increasing; increasing
C. decreasing; decreasing
D. decreasing; increasing
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
