Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed. the result would be that the interest rate

a. and investment both would increase.

b. and investment both would decrease.

c. would increase and investment would decrease.

d. would decrease and investment would increase.

Where are subduction zones most likely to form

Economic analysis indicates that it will be politically more attractive to a. enact expansionary fiscal policy during a recession than to enact restrictive fiscal policy during an economic expansion. b. enact expansionary fiscal policy during an economic expansion than to enact restrictive fiscal policy during a recession. c. enact restrictive fiscal policy during an economic expansion than to enact expansionary fiscal policy during a recession. d. raise taxes than to increase spending.

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