Question

Assume that the economy is closed. In the Classical model, a decrease in taxes will: a....

Assume that the economy is closed. In the Classical model, a decrease in taxes will:

a. increase both public saving and private saving.
b. increase public saving and decrease private saving.
c. decrease public saving and increase private saving.
d. decrease both public saving and private saving.

Homework Answers

Answer #1

OPTION C

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