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:

Mitosis

A process in cell division where a single cell divides to produce two identical daughter cells, ensuring the same number of chromosomes in each.

Genetic Material

Molecules responsible for inheritance and variation of organisms, primarily DNA or RNA.

Gamete Formation

The process of forming gametes (sperm or egg cells) through meiosis, involving the reduction of chromosome number by half.

Sexual Reproduction

A biological process that creates a new organism by combining the genetic materials of two organisms.