An increase in taxes
a. raises aggregate expenditure by raising national income, thereby increasing consumption
b. raises aggregate expenditure by raising national income, thereby decreasing consumption
c. lowers aggregate expenditure by lowering national income, thereby increasing consumption
d. lowers aggregate expenditure by decreasing consumption, thereby lowering national income
e. has no effect on aggregate expenditure
D
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The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. The price of a slice of pizza is $2 and of a can of Pepsi is $1. Suppose Priscilla has $6 to spend. If Priscilla chooses to eat 3 slices of pizza
A) she is maximizing her total utility. B) she is not equating marginal utility per dollar for pizza and Pepsi. C) she is not at a consumer equilibrium. D) Both answers B and C are correct.
As of October 2012, the amount of money as measured by M2 was about
A) $880 billion. B) $1700 billion. C) $10.2 trillion. D) $14 trillion.