Assuming No Change in the Effective Tax Rate on Capital,a

question 87

Multiple Choice

Assuming no change in the effective tax rate on capital,a decrease in the government budget deficit will reduce the current account deficit if and only if the decrease in the budget deficit

• A)reduces desired national saving.
• B)increases desired national saving.
• C)reduces desired national investment.
• D)increases desired national investment.

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Definitions:

Probable Cause

A reasonable basis for believing that a crime may have been committed, which is necessary for issuing warrants or making arrests.

Judge or Magistrate

Officials with the authority to conduct court proceedings, make legal decisions, and rule on legal matters.

Grand Jury

A legal body empowered to conduct official proceedings to investigate potential criminal conduct and determine whether criminal charges should be brought.

Probable Cause

A legal standard that requires a reasonable basis to believe a person has committed a crime, used in issuing warrants and arrests.