Why does a tax change affect aggregate demand?
A. A tax change alters saving by an equal amount.
B. A tax change alters imports and net exports.
C. A tax change alters government spending by an equal amount.
D. A tax change alters disposable income and consumption spending.
Answer: D
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The United States is a ________ nation because it pays ________ in interest to the rest of the world than it receives in ________ from the rest of the world
A) creditor; more; interest B) debtor; more; interest C) debtor; less; cash D) debtor; more; cash E) debtor; less; interest
The U.S. National Commission on Fiscal Policy and Reform has recommended changes to government expenditures and taxes which they claim would reduce the increase in the national debt between 2012 and 2020 to $4 trillion rather than $8 trillion
What are the commission's 5 recommendations?