When Drawn Against the Real Interest Rate,the Output Demand Curve

question 40

Multiple Choice

When drawn against the real interest rate,the output demand curve unambiguously shifts to the right if either or both of the following occur.

• A) an increase in current taxes and an increase in future taxes
• B) an increase in current taxes and a decrease in future taxes
• C) a decrease in current taxes and an increase in future taxes
• D) a decrease in current taxes and a decrease in future taxes

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Definitions:

Expected Value

A calculated average of all possible values for a random variable, reflecting the expected level of gain or loss over time for a given situation or set of outcomes.