Assume that the government proposes to cut taxes while, Ask an Expert

Economics

4) Assume that the government proposes to cut taxes while maintaining the current level of government expenditures. To finance this deficit, it may either
a) sell bonds to the public, or, b) print new money (via Federal reserve cooperation).

-What are the likely effects of each of these alternatives on each of the following?
a) interest rates
b) consumer spending
c) business investment
d)aggregate demand.

Would Keynesians , monetarists, and supply-siders give the same answers?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9309834

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question from the college scorecard average costs of

Question: From the College Scorecard, average costs of attending UCR is $13,144. Average salary for UCR attendees is $47,200 Average salary of someone who does not attend college is roughly $33,800 ($651/week from slides ...

Question net present value 3 points totalthe city of

Question: Net Present Value (3 points total) The city of Corvallis is deciding whether or not to undertake a project to improve the quality ofthe city's drinking water. The project would require an immediate payment of $ ...

Qestion two consumers hae identical utility functions uxy

Question: Two consumers hae identical utility functions, U(x,y) = Max(x,y). There are eight units of x and eight units of y. What are the pareto optimal allocations for this economy? Math not required (intuition question ...

Question according to the pih the ratio of permanent

Question: According to the PIH, the ratio of permanent consumption to permanent income is uncorrelated with the level of income. Thus someone earning $5,000,000 per year would save the same percentage of their income as ...

Question 1- marketing of unsought goods is ethical or not

Question: 1- Marketing of unsought goods is ethical or not? Give example of unsought goods? 2- Why international guarantee and warranty use in UAE? The response must be typed, single spaced, must be in times new roman fo ...

Question explain why if there is no formal or informal

Question: Explain why if there is no formal or informal collusion in an oligopoly market firms are more likely to match a price cut by an individual firm than they are to match a price increase? If firms in an oligopoly ...

Question many of us want to lose weight yet we find it much

Question: Many of us want to lose weight, yet we find it much easier to gain weight than to lose it! Given it takes approximately 3,000 extra calories of food to increase our weight by one pound, why is it so difficult f ...

Question after years of smoldering unrest in southern

Question: After years of smoldering unrest in southern Mexico, the rebels finally mount a full-scale attack on urban areas. Order is eventually restored, but in the meantime capital has fled the country, resulting in a 5 ...

Question describe how the world has changed in terms of

Question: Describe how the world has changed in terms of global trade in the past 10 years. Based on the assigned readings, what do you think developed countries such as the United States, Japan, Germany, and England wil ...

Question suppose the value of the japanese yen rises 20 but

Question: Suppose the value of the Japanese yen rises 20%, but in order to maintain market share in the US, major Japanese companies decide not to raise the prices. As a result, their imports do not change, but profits o ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert