As long as tax rates are not very high, a decrease in tax rates will tend to   a. increase the budget deficit b. decrease the budget deficit c. leave the budget deficit unchanged d. cause the budget deficit to first decrease then increase

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy
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As long as tax rates are not very high, a decrease in tax rates will tend to
 
a. increase the budget deficit
b. decrease the budget deficit
c. leave the budget deficit unchanged
d. cause the budget deficit to first decrease then increase
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