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If Congress votes to increase spending and taxes by the same amount, what is the effect on employment and interest rates

2 Answers

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Answer:

The correct answer was increase / no change

Step-by-step explanation:

Just took the test

User Justin Hamade
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4 votes

Answer:

a. Increase / Increase

Step-by-step explanation:

Since in the question it is mentioned that there is an increase in taxes and government spending so it represents the positive stimuls as it occurs because the government incurrent all the revenue for the public welfare due to which there is a rise in the government expenditure that boost the aggregate demand also the GDP value would be rise because of the multiplier effect

Therefore the employment level and the rate of interest would also increased

User Modupe
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