Taxes reduce total spending

a. directly by increasing government purchases by an equal amount.
b. directly by substituting investment spending.
c. indirectly by reducing government spending.
d. indirectly by reducing disposable income.

d

Economics

You might also like to view...

Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers

What will be an ideal response?

Economics

The first element of a financial crisis is

a. inflation. b. a decline in confidence in financial institutions. c. a relaxation of rules and regulations that pertain to the financial system. d. a large decline in some asset prices.

Economics