Reference no: EM132278925

During the late 1990s, likely as a result of the investment boom , real potential gdp?

A. experienced increasing growth rates

b. experienced decreasing growth rates

c. declined

d.experienced no change in growth rates

During the 1990s, average investment growth increased due to?

A. rising budget deficits

b.the onset of the information technology boom

c.a decline in investment tax credits

d.none of the above

You hear that a presidential candidate promises to cut taxes and that the tax cut will have no impact on the budget deficit. How do you evaluate the statement?

a.Acknowledge that this is a likely outcome of a tax cut

b.Concur with the statement and note that the 1980s tax cut occurred during a time of falling budget deficits

c.Concur with the statement and note that the 2017 Tax Cut and Jobs Act resulted in a decline in the budget deficit

d.Disagree and note that this could occur only when U.S. tax rates are much higher than their current levels