To maximize profit, a monopolist will produce and sell a quantity such that for the last unit sold, marginal revenue equals marginal cost, and charges a price given by the demand curve at that output level

Why does a tax change affect aggregate demand?

A. A tax change alters saving by an equal amount. B. A tax change alters imports and net exports. C. A tax change alters government spending by an equal amount. D. A tax change alters disposable income and consumption spending.

Crowding out may occur because ________ fiscal policy usually involves the government ________ money.

A. expansionary; lending B. contractionary; borrowing C. contractionary; lending D. expansionary; borrowing