If the marginal propensity to consume is 0.5, the income tax rate is 10%, and income rises by $20,000 . by how much will consumption spending increase?

The theory that government borrowing may function like an increase in taxes, that is, reducing current consumption and business expenditures, is known as

A) the marginal propensity to consume. B) the Ricardian equivalence theorem. C) planned tax policy. D) Congressional Tax policy.

The quantity demanded of a product increases as its price declines because the:

A. lower price results in an increase in supply. B. demand curve is downsloping. C. lower price shifts the demand curve rightward. D. lower price shifts the demand curve leftward.