Tax and interest rate related problem

If business taxes are decreased and the real interest rate increases: A) consumption and saving will necessarily increase. B) the level of investment spending might either increase or decrease. C) the level of investment spending will necessarily increase. D) the level of investment spending will necessarily decrease.

View Complete Question

Related Questions in Microeconomics

Q : Economic minimized losses or maximized

When a firm’s total revenue potentially exceeds total variable cost for at least one output level, in that case economic losses are minimized or profit is maximized through producing where: (i) average total cos

Q : Problem on perfectly competitive

Can someone please help me in finding out the accurate answer from the following question. The profit-maximizing firm which is perfectly competitive in the resource market however which has the market power in output market will hire labor at a point where: (1) VMP =

Q : Bilateral Monopoly-Collective Bargaining

Can someone help me in finding out the right answer from the given options. The potential range of negotiable price or wage solutions whenever both the seller and buyer contain substantial economic clout is recognized in the: (1) Bargaining model devised by the John H

Q : Maximize profit or minimizes losses

Assume that a monopolist faces a demand curve that is higher at several output levels than is the firm’s average variable cost curve. Therefore the firm will generate where MR is equal to MC to maximize: (w) total revenue. (x) consumer surplus.

Q : Perfectly elastic supply problem When

When will a rise in demand entail an increase in the quantity demanded however no change in the price?

Q : Price discriminate maximizes joint

When a successful cartel which cannot price discriminate maximizes the joint profits of its members: (1) the marginal social benefits of additional output exceed the marginal social costs of output. (2) this is impossible for any consumer to gain with

Q : Problem on coefficient of income

Refer to the following diagrams give the answer of following question. In which case would the coefficient of income elasticity be positive? 1) A 2) B 3) C 4) D

Q : Higher interest rate in funds A higher

A higher interest rate is probably to be a consequence of: (1) lower expected profitability to investors. (2) new tax breaks onto interest income. (3) weakening preferences for current income over future income. (4) increased preferences for recent co

Q : Question based on poverty rate Select

Select the right ans wer of the question. Which of the following would we expect to contain the highest poverty rate? A) white households headed by males B) elderly white households C) white households headed by females D) African-American households headed by femal

Q : Determine equilibrium by Price Ceilings

Between the predictable results while government sets a maximum price below equilibrium are: (1) shortages. (2) queues. (3) black markets and corruption. (4) economic inefficiency. (5) All of the above.

Discover Q & A

Leading Solution Library

Avail More Than 1419336 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1944268
Asked

3,689

Active Tutors

1419336

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment