Tax increases on business income decrease aggregate demand by decreasing
A) business investment spending. B) government spending.
C) consumption spending. D) wage rates.
A
Economics
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Sears and Wal-Mart must decide whether to lower their prices, based on the economic profits shown in the table above. Which of the following is TRUE?
A) This situation is not a prisoners' dilemma. B) If Sears lowers its prices and Wal-Mart does not, Sears will make a $20 million economic profit. C) If Wal-Mart lowers its prices, Sears should keep its prices high. D) Both Sears and Wal-Mart would jointly be better off if they could each keep their prices high.
Economics
Which of the following is NOT an example of transactions costs?
A) high interest rates B) lawyers' fees C) brokerage commissions D) minimum investment requirements
Economics