According to the traditional Keynesian approach, a tax cut raises aggregate demand because
A) a tax cut always results in a balanced budget.
B) taxes are part of the C + I + G + X line.
C) taxpayers anticipate a tax increase in the future.
D) disposable income available to consumers increases.
D
Economics
You might also like to view...
The assumption that labor markets clear makes it very easy for the classical model to explain expansions
a. True b. False
Economics
At a consumer's optimal choice, the consumer chooses the combination of goods that equates the marginal rate of substitution and the price ratio
a. True b. False Indicate whether the statement is true or false
Economics