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
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
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy
Problem 3TY
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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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