Answer to Question #212233 in Macroeconomics for BONGIWE

Question

Which of the following statements is/are correct?a.The initial impact of a change in taxation is on the goods market.b. A change in government spending only influences the goods market and has no impact on the financial market. c. The initial impact of a change in the interest rate is on the financial market after which it influences the goods market. d. If the investor confidence in the economy worsens, the impact will be first on the financial market, and then the goods market.

Answer 1

c and d