This graph depicts a tax being imposed, causing demand to shift from D1 to D2. According to the graph shown, the tax caused:
A. positive government revenue and decreased consumption.
B. zero government revenue and decreased consumption.
C. a transfer of revenue to surplus and increased consumption.
D. positive government revenue and increased consumption.
A. positive government revenue and decreased consumption.
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An increase in which of the following will increase the value of the spending multiplier?
A) The supply of money B) Equilibrium output C) Personal income tax rates D) The marginal propensity to consume E) The required reserve ratio
_____ refers to the changes in government spending and taxation that are aimed at achieving a policy goal
a. Discretionary monetary policy b. Discretionary fiscal policy c. Discretionary foreign trade policy d. Discretionary exchange rate policy e. Discretionary interest rate policy