Econ Masters! Please check my answers to these two questions! I must know the co

Question

Econ Masters! Please check my answers to these two questions!

I must know the correct Answers!

Thanks!!

1. The costs of government budget deficits include

A. higher interest rates.

B. elimination of public savings.

C. a decrease in private investment.

D. redistribution of future wealth.

E. all of the above.

My Answer is E

2. Which of the following statements about economic policy changes is false?

A. Stabilization policy suffers from time lags between the recognition of the problem and the actual effects of the policy.

B. An argument cited against stabilization policy is that too often the stabilizing "fix" does more harm than good.

C. Arguments in favor of committing the central bank to a policy of zero inflation include the notion that inflation results in arbitrary redistributions of wealth.

D. Double taxation means that both the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the United States.

E. Proponents of tax-law changes to encourage saving would argue that corporate tax rates should be increased.

My answer is C

Explanation / Answer

C. a decrease in private investment.

D. Double taxation means that both the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the United States.

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