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:

Cable TV Market

A sector of the television broadcasting industry that provides television services to consumers via coaxial or fiber-optic cables.

Advertise

The act of promoting products or services to potential customers through various media channels.

Dominant Strategy

In the context of game theory, a strategy that remains superior for a player in any game, no matter what strategies are selected by the opposing players.

High Price

A situation where the cost of a good or service is considered above the average or expected price point.