If the government announces a cut in the capital gains tax and it is expected that investment spending will increase as a result, which of the following are also likely?
a. An upward shift in the aggregate expenditure line, a rightward shift of the money demand curve, and a leftward shift of the aggregate demand curve
b. A downward shift in the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve
c. An upward shift in the aggregate expenditure line, a leftward shift of the money demand curve, and a rightward shift of the aggregate demand curve
d. A downward shift in the aggregate expenditure line, a leftward shift of the money demand curve, and a leftward shift of the aggregate demand curve
e. An upward shift in the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve.
E
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If a country imposes a $10 tariff on a foreign monopolist, the price received by the monopolist, net of the tariff, will:
a. fall by $10. b. fall by less than $10. c. fall by more than $10. d. fall by $0.
The study of decision making that assumes people are rational in a broad sense, even if they do not have complete and perfect information is called _____
a. rational economics b. reasonable economics c. understandable economics d. behavioral economics e. optimal economics