Explain why changes in government spending are viewed as nearly always affecting national saving, while changes in taxes are viewed as having more ambiguous effects on national saving and real interest rates. Why does it matter?

Explain why changes in government spending are viewed as nearly always affecting national saving, while changes in taxes are viewed as having more ambiguous effects on national saving and real interest rates. Why does it matter?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter27: Investment, The Capital Market, And The Wealth Of Nations

Section: Chapter Questions

Problem 1CQ

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