Other things the same, during recessions taxes tend to
a. rise. The rise in taxes stimulates aggregate demand.
b. rise. The rise in taxes contracts aggregate demand.
c. fall. The fall in taxes stimulates aggregate demand.
d. fall. The fall in taxes contracts aggregate demand.
c
Economics
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List and explain factors that influence consumption expenditure
What will be an ideal response?
Economics
If the economy is currently in equilibrium at a level of GDP that is above potential GDP, which of the following would move the economy back to potential GDP?
A) a decrease in interest rates B) a decrease in wealth C) a decrease in the value of the dollar relative to other currencies D) an increase in business confidence
Economics