The division of the burden of a tax between buyers and sellers in a market is called tax incidence
Indicate whether the statement is true or false
TRUE
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Energy drinks and granola bars are normal goods. When the price of energy drinks decreases, the income effect causes a
a. shift to a lower indifference curve, and the consumer buys fewer granola bars. b. shift to a higher indifference curve, and the consumer buys more granola bars. c. movement along the indifference curve, and the consumer buys fewer granola bars. d. movement along the indifference curve, and the consumer buys more granola bars.
Other things equal, the multiplier effect associated with a change in government spending is:
A. the same as that associated with a change in taxes. B. equal to that associated with a change in investment or consumption. C. less than that associated with a change in investment. D. greater than that associated with a change in investment.