Solved

How Do Transfer Payments and Taxes Affect Aggregate Spending

Question 97

Multiple Choice

How do transfer payments and taxes affect aggregate spending?  


A)  Transfer payments and taxes affect aggregate spending directly, just as consumption does. 
B)  Transfer payments and taxes affect aggregate spending indirectly, by first changing disposable income and thereby changing consumption. 
C)  Transfer payments and taxes do NOT affect aggregate spending. 
D)  Transfer payments and taxes affect aggregate spending indirectly, by first changing national income and thereby changing consumption.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions