Thursday, February 4, 2010

(TRUE/FALSE)Monetarists argue that fiscal policy,such as a tax cut, will affect the level of real GDP...?

...only if it is accompanied by a change in the money supply.(TRUE/FALSE)Monetarists argue that fiscal policy,such as a tax cut, will affect the level of real GDP...?
A tax cut will put more money in peoples pockets, which they will spend, causing production to rise and more taxes being paid to the government. At least that is what they say.
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