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Which of the Following Would Encourage Economic Growth Through Increases

Question 83
Multiple Choice

Which of the following would encourage economic growth through increases in the capital stock? A) a change from an income tax to a consumption tax B) an increase in household saving C) a decrease in the government deficit D) all of the above

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Q 84
If net taxes fall by $80 billion,we would expect A) the government deficit to fall by $80 billion. B) household saving to rise by $80 billion. C) household saving to rise by less than $80 billion. D) household saving to fall by more than $80 billion.
Q 85
Which of the following will not occur as the result of a decrease in net taxes? A) decreased household saving B) decreased government saving C) a shift to the left of the supply curve for loanable funds D) all of the above
Q 86
If,in an economy experiencing inflation,the government decided to tax real interest income rather than nominal interest income,this change would cause the real interest rate to ________ and the equilibrium quantity of loanable funds to ________. A) fall; rise B) fall; fall C) rise; fall D) rise; rise
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