In an aggregate expenditures diagram, a lump-sum tax (T) will:
A. not affect the C + I g + X n line.
B. shift the C + I g + X n line upward by an amount equal to T.
C. shift the C + I g + X n line downward by an amount equal to T.
D. shift the C + I g + X n line downward by an amount equal to T × MPC.
D. shift the C + I g + X n line downward by an amount equal to T × MPC.
Economics
You might also like to view...
"Good news" about an expenditure-related indicator drives bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
Economics
An insurance company finds that it insured an adverse selection of largely ill patients. It is forced to increase insurance premiums to reduce losses. How does this aggravate the adverse selection problem?
Economics