Multiple Choice
How does a change in taxes primarily affect aggregate demand?
A) a tax change alters disposable income and consumption spending
B) a tax change alters exports and net exports
C) a tax change alters investment by an equal and opposite amount
D) a tax change alters government purchases by an equal amount
Correct Answer:
Verified
Correct Answer:
Verified
Q2: What type of expenditures comprises the largest
Q3: A tax cut has a greater effect
Q5: If MPC is 0.8,what size effect would
Q6: What type of tax is the current
Q7: If the government wanted to move the
Q8: Which of the following is an example
Q9: The issuance of debt involves some intergenerational
Q9: What will an increase in government purchases
Q10: Once Statistics Canada identifies an economic downturn,the
Q11: Figure 10-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5766/.jpg" alt="Figure 10-2