Assume Individuals Consider Only the Short Run Effects of Changes

question 58

Multiple Choice

Assume individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates.Suppose current taxes are cut and that individuals expect future taxes to decrease.Given this information,we know with certainty that

• A)current output and the current interest rate will both increase.
• B)current output will increase.
• C)the current interest rate will increase.
• D)the current output effects are ambiguous.

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Definitions:

Fiduciary Duties

Fiduciary duties refer to the obligations of loyalty and care that certain individuals, such as trustees or corporate officers, owe to those they serve.

Oppressive Conduct

Actions by major stakeholders in a corporation that unfairly prejudice the interests of minority shareholders.

Articles Of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation, detailing key aspects such as name, purpose, and structure.

Bylaws

Written rules and regulations adopted by an organization or community to govern its actions and ensure structured management.