Multiple Choice
Why does a tax change affect aggregate demand?
A) A tax change alters saving by an equal amount.
B) A tax change alters imports and net exports.
C) A tax change alters government spending by an equal amount.
D) A tax change alters disposable income and consumption spending.
Correct Answer:
Verified
Correct Answer:
Verified
Q35: The Great Depression provided support for Keynes'
Q36: As the marginal propensity to consume (MPC)
Q37: The marginal propensity to consume is defined
Q38: Keynes rejected the view that lower wages
Q39: Changes in government spending and/or taxes as
Q41: When Keynesian equilibrium is present,<br>A) aggregate demand
Q42: Prior to the time of John Maynard
Q43: Discretionary fiscal policy involves<br>A) expansion of government
Q44: Which of the following best expresses the
Q45: According to the Keynesian view, the prolonged