Multiple Choice
An decrease in taxes shifts aggregate demand
A) to the right.The larger the multiplier is,the farther it shifts.
B) to the right.The larger the multiplier is,the less it shifts.
C) to the left.The larger the multiplier is,the farther it shifts.
D) to the left.The larger the multiplier is,the less it shifts.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: A decrease in government spending<br>A)increases the interest
Q20: Supply-side economists focus more than other economists
Q21: Suppose that the MPC is 0.7,there is
Q22: The multiplier for changes in government spending
Q23: If taxes<br>A)increase,then consumption increases,and aggregate demand shifts
Q26: Which of the following sequences best represents
Q27: Tax increases<br>A)and increases in government expenditures shift
Q28: An increase in government spending<br>A)increases the interest
Q29: Figure 34-6.On the left-hand graph,MS represents the
Q177: The government builds a new water-treatment plant.