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Suppose that Government A decreased the tariff on foreign goods and that Government B has moved to a lower marginal tax rate. Analyzing the effects on the long-term growth rate in the economy, which of the following would be most accurate? A. Government A’s growth rate will increase and Government B’s growth rate will increase. B. Government A’s growth rate will decrease and Government B’s growth rate will decrease. C. Government A’s growth rate will decrease and Government B’s growth rate will increase. |