Solved

What Effect Would an Increase in Business Tax Rates,combined with a Decrease

Question 159

Multiple Choice

What effect would an increase in business tax rates,combined with a decrease in consumer confidence,have on aggregate demand (AD) ?


A) AD would increase.
B) AD could either increase or decrease, depending on which change was of a greater magnitude.
C) AD would decrease.
D) AD would stay the same.

Correct Answer:

verifed

Verified

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

Related Questions

Q55: The interest rate effect helps explain why

Q132: The aggregate demand curve portrays the relationship

Q154: If the price level in Canada increases,domestic

Q155: Fred's consumption purchases fall from $140 000

Q156: Which of the following will increase when

Q160: What would be the impact on aggregate

Q161: When the stock market continues a steady

Q162: What impact would an increase in the

Q163: Figure 8-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5766/.jpg" alt="Figure 8-1

Q164: Which of the following will NOT increase