What the impact of the tax cut will on the equilibrium


Problem

Suppose the government cuts taxes. Using a supply and demand analysis of the capital market, explain what the impact of the tax cut will be on the equilibrium real interest rate at full employment.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What the impact of the tax cut will on the equilibrium
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