问题 单项选择题

According to the new classical model, a reduction in current taxes that is financed by government borrowing will most likely increase:()

A. household saving but not real interest rates.

B. real interest but not household saving.

C. both household saving and real interest rates.

答案

参考答案:A

解析:

New classical economists believe that fiscal policy changes will have little effect because consumers will view deficit spending as a future tax liability and restrain their consumption in anticipation of this liability. Consumers will increase savings in anticipation of higher taxes in the future. Additionally, the increase in consumer saving will increase the supply of loanable funds, completely offsetting the increased demand for loanable funds from the government leaving interested rates unchanged. The end result is that there is no change in output, price, interest rate, or unemployment.

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