Multiple Choice
If taxes
A) increase, then consumption increases, and aggregate demand shifts rightward.
B) increase, then consumption decreases, and aggregate demand shifts leftward.
C) decrease, then consumption increases, and aggregate demand shifts leftward.
D) decrease, then consumption decreases, and aggregate demand shifts rightward.
Correct Answer:

Verified
Correct Answer:
Verified
Q15: If the Fed increases the money supply,<br>A)the
Q39: Suppose the MPC is 0.9.There are no
Q50: Most economists believe that a cut in
Q72: Other things the same,during recessions taxes tend
Q187: Which of the following events would shift
Q196: Charisse is of the opinion that the
Q204: Suppose that the government increases expenditures by
Q211: Assume the MPC is 0.80. The multiplier
Q213: The interest-rate effect<br>A)depends on the idea that
Q214: If Congress cuts spending to balance the