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vellojo vellojo
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7 years ago
In an article regarding Bangladesh's economy, the author suggests  that the government ..."[g]ive double tax breaks on investment dollars. Give a tax break to R&D [research and development]. Give a tax break on donations to educational institutions. "
www.groundreport.com,     March 24, 2008

Suppose the multiplier in Bangladesh is 2.  As a result of enacting the proposed policies, which of the following describe possible outcomes in the short run?
   i.   an $20 billion increase in investment will increase aggregate expenditure by $40 billion.
   ii.   the AE curve will shift upward.
   iii.   there will be an unplanned increase in inventories.
A) i and ii only
B) i and iii only
C) ii and iii only
D) i, ii and iii
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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yaderayadera
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7 years ago
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vellojo Author
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#2
7 years ago
Checks out after I submitted my assignment Smiling Face with Open Mouth
Studying economics @ Edinburgh U
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#3
4 years ago
thank you
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#4
3 years ago
Thank you
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