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:

Conjugated Pi System

A molecular structure where alternating single and double bonds allow electrons to be more delocalized and contribute to the molecule's stability.

LUMO

The Lowest Unoccupied Molecular Orbital is the orbital with the lowest energy level capable of accepting an electron.

1,3-Butadiene

An organic compound that is a simple conjugated diene with the formula C4H6, known for its role in the production of synthetic rubber.

Allylic Carbons

Atoms of carbon that are positioned next to a carbon-carbon double bond in a molecule, often exhibiting unique reactivity due to their position.