The long run effect of a tax cut in the IS-LM is to: O Increase the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The long run effect of a tax cut in the IS-LM is to: O Increase the interest rate and not affect real output Not affect either the interest rate and the real output O Increase both interest rate and real output Not affect the interest rate and increase the real output The long run effect of a tax cut in the IS-LM is to: O Increase the interest rate and not affect real output Not affect either the interest rate and the real output O Increase both interest rate and real output Not affect the interest rate and increase the real output
Expert Answer:
Answer rating: 100% (QA)
correct option is Increase the interest rate and not affect real ... View the full answer
Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1111822354
6th edition
Authors: Robert E. Hall, Marc Lieberman
Posted Date:
Students also viewed these economics questions
-
The following figure shows the impact of a tax cut on the loanable funds market when the entire tax cut is spent. What if, instead, the entire tax cut had been saved? a. Draw a diagram of the...
-
Your state introduced a tax cut in the year 1999. You are interested in seeing whether this tax cut has led to increases in personal consumption within the state. You observe the following...
-
Your state introduced a tax cut in the year 2007. You are interested in seeing whether this tax cut has led to increases in personal consumption within the state. You observe the following...
-
Three brothers, Daniel, David and Derrick have been discussing their respective taxation affairs and how much they dislike paying tax. None of them are Scottish taxpayers. Daniel's income for tax...
-
1. Do you believe that the internal combustion engine will lose its dominant position in the future? Why or why not? What time horizon are you looking at? 2. Which factors do you think will be most...
-
A 9% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 8.8450%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of...
-
What is ultimate risk? Give and explain the formula for ultimate risk.
-
Following are the preclosing trial balances of Marilyn Township Senior Citizens Center as of December 31, 2013. Prepare a statement of financial position and a statement of activities at and for the...
-
What is a linear optimization model? Explain this concept in more detail and provide a summary of the article below....
-
In a physics lab experiment, a compressed spring launches a 20 g metal ball at a 30 angle. Compressing the spring 20 cm causes the ball to hit the floor 1.5 m below the point at which it leaves the...
-
Identify two potential risks (schedule, technical, weather, or people) that could negatively impact your kitchen renovation. State the type of risk mitigation strategy you would use to handle each...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. The relationship between a consignor and a common carrier is a bailment for the sole benefi...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. The bailee in a bailment for work and services is entitled to hold and sell the property if...
-
A landlords promise that the premises are reasonably fi t for occupation and that there are no defects that would impair the health, safety, or well-being of the occupants. a. abandonment b....
-
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn. If a tenant abandons the premises, the landlord is permitted to continue charging rent...
-
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn. A warranty of habitability is the tenants promise that he or she will inhabit the...
-
In the mixture of mixtures approach for classification, how can we fine-tune ki, the number of components for class C?
-
Write an SQL statement to display all data on products having a QuantityOnHand greater than 0.
-
a. Use the information in the following table to find the exchange rate if the euro and the U.S. dollar are allowed to float freely. b. What will happen to the exchange rate if the demand for euros...
-
Some economists have argued that when the government cuts taxes in a way that increases the debt ratio, people recognize that tax rates will have to rise in order to pay higher interest on the debt....
-
Saving is good for the economy; it increases GDP. Is this statement true, false, or sometimes true and sometimes false? Explain your reasoning.
-
Have you experienced artistic portrayals of your own culture or identity that you find offensive? If so, do you think they should be censored? The statue of President Theodore Roosevelt flanked by an...
-
Describe some of the reasons that people make art and give examples of symbolism and ritual in art.
-
What is the core approach to an anthropology of art?
Study smarter with the SolutionInn App